Tech Update 2017

Copyright © 2017, K2 Enterprises, LLC. Reproduction or reuse for purposes other than a K2 Enterprises’ training event is prohibited. Major Topics For Today’s Discussion

 General Observations  Update  Cloud Update  Hardware Update  Security Update  Hype Cycle  Future Technologies  K2 Summit Products  Strange, But True

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Achieving The Learning Objectives

 Identify key technologies to implement  Differentiate between “must have” and “nice to have” technology options  List evolving technologies with potential  Apply various tools to solve real-world business problems

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1 Copyright © 2017, K2 Enterprises, LLC. Reproduction or reuse for purposes other than a K2 Enterprises’ training event is prohibited. About Randy Johnston Quick Facts:  Inducted Accounting Hall of Fame, Feb 2011  2004-2016 Accounting Today 100 Most Influential in Accounting for thirteen years  Top 25 Thought Leader 2011-2017  40+ years of technology experience, top rated speaker for 30+ years

Paid Tourist At Heart  Author of articles on Technology including a monthly [email protected] column in CPAPractice Advisor [email protected] 620-664-6000 x 112  Published author of six books, from Hutchinson, KS

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What About NMGI? CRN top 100 technology company MSPMentor top 100 company NetCare – National CPA support services NetRescue and NetStore – Backup Appliances and web-based backup Boutique Technology and Business Continuity consulting – CPA Firm Technology Assessments, Paperless, Accounting Software Selection (ERP, BI, HR, SaaS, CRM) WebCare and NetHosting – Custom Web site and Cloud services

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2 Copyright © 2017, K2 Enterprises, LLC. Reproduction or reuse for purposes other than a K2 Enterprises’ training event is prohibited. About K2 Enterprises  Provides live and on-demand Continuing Professional Education (CPE) in 48 U.S. states and in Canada  Largest provider of technology-focused CPE for accountants and financial professionals in North America  Services Offered  Live in-person presentations (conferences & seminars)  Webinars  On-site training  On demand self-study materials  www.k2e.com for more information

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K2 Enterprises Web Sites – No Tracking (75% of all web sites do!)  www.k2e.com - CPE Info  www.CPAFirmTech.com – CPA Firm Info  www.AccountingSoftwareWorld.com – Accounting Software Info  www.TotallyPaperless.com – Paperless Info  https://www.youtube.com/user/K2Enterprises - The K2 Enterprises YouTube channel with over 160 free technology training videos

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3 Copyright © 2017, K2 Enterprises, LLC. Reproduction or reuse for purposes other than a K2 Enterprises’ training event is prohibited. Syzygy  In Disney’s Hercules “In 18 years precisely, the planets will align ever so nicely”  Biology – pairing of chromosomes, Math – Polynomials  Carl Jung – Deep psychological relationships, but also reflects opposites  An eclipse is a syzygy, but not all syzygies are eclipses. The term could be applied for alignment  Remember the solar eclipse on August 21 and consider whether or not your technology is aligned

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Five New Digital Brain Disorders  Nomophobia - no mobile phobia – the feeling of panic one has upon being separated from one’s phone or tablet  Technoference - loss of relationship quality with one’s significant other due to tech device interruptions  The Phantom Ring – Occurs when you incorrectly think/believe your phone is ringing when it is not, including fauxcellarm, phantom ringing, and ringxiety  Cyberchondria – Similar to hypochondria where people incorrectly self- diagnose illness using Google  Truman Show Delusion – Incorrect perception that your life is being watched by others Source: TheWeek.com (http://theweek.com/articles/677922/5-new-brain-disorders-that-born-digital-age)

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4 Copyright © 2017, K2 Enterprises, LLC. Reproduction or reuse for purposes other than a K2 Enterprises’ training event is prohibited. Social And Mobile Disorders  Social Media  Mobile  “Electronic gossip”  Distracted driving deaths  Statements without responsibility  Younger users more dependent on mobile  Large scale mobilization  Understanding of technology  Younger users picking new tools – minimal Marco Polo, SnapChat  Team members wasting time on phones instead of working

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General Observations

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5 Copyright © 2017, K2 Enterprises, LLC. Reproduction or reuse for purposes other than a K2 Enterprises’ training event is prohibited. The Office Of The Future Is Different More Sophisticated Assistants

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Conference Room Boards  Google Jamboard  Microsoft Hub - New “try before you buy” program and new leasing options are available starting 2/15 http://www.zdnet.com/article/users-can-try-surface-hub-before- buying-starting-february-15/  SMART’s entry - eInk whiteboard from ShowStoppers  Cisco Spark Board - http://www.zdnet.com/article/cisco-rolls-out- spark-board-all-in-one-cloud-connected-digital-whiteboard/ First video capable device that Cisco has shipped that’s only connected to the Cloud

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6 Copyright © 2017, K2 Enterprises, LLC. Reproduction or reuse for purposes other than a K2 Enterprises’ training event is prohibited. Google Jamboard  55” 4K TV w/touchscreen  Works with G Suite (formerly Google Docs), Drive, and Google Hangouts  Wi-Fi, HD camera and speakers built into device  Uses styli, erasers which do not need batteries  Shipped May 23, 2017  Under $4,999 plus $1349 for the rolling stand, $600 annual fee

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Let’s Work In The Gym  New standing desks allow you to have a meeting in the gym while working out  AltWork – similar to dentist chair with a desk (reductio ad absurdum) - $5K  Voice commands – Examples include Cortana, Alexa, Google Home, Siri  Being extended further, working with a Iot

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7 Copyright © 2017, K2 Enterprises, LLC. Reproduction or reuse for purposes other than a K2 Enterprises’ training event is prohibited. Examples From CES

AltWork Exercise At Work

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Examples From NMGI

Business Continuity Management

• David • Jason

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8 Copyright © 2017, K2 Enterprises, LLC. Reproduction or reuse for purposes other than a K2 Enterprises’ training event is prohibited. Voice Interface  35.6 M Americans will use a voice interface at least once/month.  Alexa made significant strides this year  Siri did well, but is lagging behind, as is Google. Apple with new “smart speaker”  Cortana OK on PC's, but few use it, and the lack of use on Android/iOS is problematic – new Invoke  Mark Zuckerberg built his device like Iron Man he calls “Jarvis”  Google Now is now on Pixel smartphones as well as on Google Home (24% Share) – Burger King gone wrong…

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Google Home  Manages home entertainment systems and smart devices  Google search  New AI powered Google Assistant (The AI is also in new Pixel phones)  Allo messaging app that uses Duo, a video chat platform  Shipped Nov. 4 - $129 + $20 base  BTW, Google has 7 products with > 1 Billion users

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9 Copyright © 2017, K2 Enterprises, LLC. Reproduction or reuse for purposes other than a K2 Enterprises’ training event is prohibited. CSI? Amazon Echo! Fitbit! Siri!  Bentonville, AR case with Victor Collins  11 Million units sold mid-2015 to  Smart Utility meter said 140 gallons of water used between 1-3 AM Dec 2016  iPhone 6s Plus call  15-20M in 2017  Alexa used in trial  OH – heart rate pacemaker used to in  Alexa 70% Share arson and insurance fraud  Echo, Dot, Show, Look  CT – Fitbit showed wife walking after husband claimed intruder had killed her  Alexa, Siri, Google search, GPS location  Third Party Doctrine

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The Internet of Things (IoT) May also be called IoIT (Internet of Insecure Things)

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10 Copyright © 2017, K2 Enterprises, LLC. Reproduction or reuse for purposes other than a K2 Enterprises’ training event is prohibited. You Have To Think Security  Large number of high profile security #FAILs in 2016, early 2017  Need to be very careful here  Perhaps put these devices on a separate network or a different VLAN to keep these segregated from your devices which are confidential  Kind of a “quarantine” so they can work, interact only with Internet and other IoT devices, limiting access to PCs  ZigBee/ZWave/IoTivity

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Business Process Automation Is Big Essential To Your Future Success

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11 Copyright © 2017, K2 Enterprises, LLC. Reproduction or reuse for purposes other than a K2 Enterprises’ training event is prohibited. Major Trends In Workflow  Apps/workflows without writing code  Microsoft PowerApps/Flow  Zoho Apps  eFileCabinet  Trello  Other customizable workflow tools  User experience/interface

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CPA Firm Workflow Products  XCM  SurePrep – Tax Caddy  Doc.IT  CCH – WorkStream, My1040Data  ShareFile – Client Request List

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12 Copyright © 2017, K2 Enterprises, LLC. Reproduction or reuse for purposes other than a K2 Enterprises’ training event is prohibited. Mobile Apps  Microsoft  Flow  Power BI  PowerApps  Zoho AppBuilder  DMS like Doc.It, eFileCabinet and CCH Document  Real time reporting and alerts are also needed

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Assisted Document Retrieval/Storage  AccountantsWorld – Automatically getting check images, bank statements and bank feeds  XCM  Entryless  FileThis Fetch  Hubdoc  Receipt Bank

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13 Copyright © 2017, K2 Enterprises, LLC. Reproduction or reuse for purposes other than a K2 Enterprises’ training event is prohibited. Enterprise Architecture And Service Oriented Architecture Are Back But Now In The SMB Space

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What Are EAA And SOA?  Integration between CRM, business/operations management and financials  Integration with banks, payment services  Business logic/workflow available or programmed into systems, e.g. x.ai (Ask Amy) for scheduling  Integration points into best of breed and families of applications

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14 Copyright © 2017, K2 Enterprises, LLC. Reproduction or reuse for purposes other than a K2 Enterprises’ training event is prohibited. Who Does It?  AccountantsWorld  Acumatica and Acumatica CRM  365 for Financials Business edition and Microsoft CRM  Sage Live and Salesforce  Oracle NetSuite (recent acquisition, still figuring out impact on strategy)

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Microsoft Update

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15 Copyright © 2017, K2 Enterprises, LLC. Reproduction or reuse for purposes other than a K2 Enterprises’ training event is prohibited. Copyright © 2017, K2 Enterprises, LLC. Reproduction or reuse for purposes other than a K2 Enterprises' training event is prohibited.

Windows Cloud (10 S?) (ARM)  Will run on ARM devices – similar to Windows RT - Release timing????  Centennial Apps = convert classic Win32 apps to prepackaged Universal Windows Platform Apps (in preview as of 2/2017)  Will also have some support for Win32 Apps, although not expected to be as robust as Intel chips  Can’t run with elevated security privileges, so this will make some apps incompatible (QB?)  https://www.thurrott.com/windows/89900/hands-windows- cloud

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16 Copyright © 2017, K2 Enterprises, LLC. Reproduction or reuse for purposes other than a K2 Enterprises’ training event is prohibited. Cloud – Microsoft’s Chromebook  Announced in early May  Designed for consumers who dominantly use a web browser and therefore it is a limited scope OS  Will be upgradeable to Windows 10 Pro  Will run OneCore/ Apps and Office  Will not run most other installable apps

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Data Centers – Azure  Microsoft competing on price and performance to convert clients from Amazon  Pricing for small instances still high  Incentives being paid to some developers to bring their product to Azure  Replication and hosting laws followed well  Added Field Programmable Gate Arrays in 2016 and plan to add ARM-based Windows Servers this year

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17 Copyright © 2017, K2 Enterprises, LLC. Reproduction or reuse for purposes other than a K2 Enterprises’ training event is prohibited. Windows 10 Updates  Original Release – July, 2015 (RTM), no longer supported  Anniversary Edition (Redstone) – August 2016 (SP1)  Adds ink, sticky notes, keyboard, extensions for Microsoft Edge  Removes group policy management tools from Win 10 Pro  Adds Win 10 Enterprise E3 at $84/year  Creators Edition (Redstone 2) – March 2017 (SP2), Official April 11  Features include 3D Paint, Groove Music Maker, Pickup where I left off on another PC, Edge enhancements, and Action Center enhancements  Redstone 3 – Fall 2017 – adds MyPeople, clear live tiles and OneCore

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Windows 10 release cadence Two releases supported in market

2016 2017 2018

Windows 10 July 2015

November Update November 2015

Anniversary Update August 2016

Creators Update April 2017

Second Update in 2017 Timing TBD

Feedback Pilot Production Source: Microsoft (https://channel9.msdn.com/events/Ignite/Australia-2017/WIN212)

18 Copyright © 2017, K2 Enterprises, LLC. Reproduction or reuse for purposes other than a K2 Enterprises’ training event is prohibited. Windows End Of Life Dates/Mainstream Support  Windows 10 RTM - May 9, 2017/April 11, 2017  Windows 8.1 – January 10, 2023/January 9, 2018  Windows 7 – January 14, 2020/January 3, 2015  Windows Vista – April 11, 2017/April 10, 2012

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Windows 7 Security features

Breach detection Device Threat Identity Information investigation & protection resistance protection protection response

PRE-BREACH POST-BREACH

19 Copyright © 2017, K2 Enterprises, LLC. Reproduction or reuse for purposes other than a K2 Enterprises’ training event is prohibited. Windows 10 Security on Legacy or Modern Devices (Upgraded from Windows 7 or 32-bit Windows 8)

Breach detection Device Threat Identity Information investigation & protection resistance protection protection response

PRE-BREACH POST-BREACH

Windows 10 Security on Modern Devices (Fresh Install or upgraded from 64-bit Windows 8 )

Breach detection Device Threat Identity Information investigation & protection resistance protection protection response

PRE-BREACH POST-BREACH

20 Copyright © 2017, K2 Enterprises, LLC. Reproduction or reuse for purposes other than a K2 Enterprises’ training event is prohibited. Windows Hello Authentication  Microsoft's authentication service meant to replace passwords, already works with Azure and Azure Active Directory Connect. With the Windows 10 Creators Update, users also will be able to use Windows Hello in on-premises Active-Directory-only environments, Microsoft officials said on Feb. 10.  Fingerprints, pics now supported with on-premises AD in addition to Azure AD in Windows 10 Creators Update (late Q1/early Q2)  Microsoft and Intel also are working together on integrating Hello with Intel's Authenticate technology. Windows devices that support this hardware-based authentication and integration will be available by the end of 2017, officials said. (This is part of the Intel Project EVO work.)  Yubikey ecosystem now works with Windows Hello  Kensington Verimark  Duo, AuthAnvil, RSA, Google & others have multi-factor authentication

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Office 365 Security Score  securescore.office.com  Scores security for Office 365 configuration on a 440 point scale, recommends specific actions to increase security  Decrease risk of unnecessary exposure  Perhaps should be scheduled as regular maintenance task, just like checking a firewall

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21 Copyright © 2017, K2 Enterprises, LLC. Reproduction or reuse for purposes other than a K2 Enterprises’ training event is prohibited. Office 2016 And Power BI

• Power BI – Online Microsoft service for storing, analyzing and visualizing data • With Office 2016 you can publish workbooks directly to Power BI to create reports and dashboards • Content packs for dozens of applications

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22 Copyright © 2017, K2 Enterprises, LLC. Reproduction or reuse for purposes other than a K2 Enterprises’ training event is prohibited. Cloud Update

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The Digital Revolution Is Underway Not Your Father’s Oldsmobile!

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23 Copyright © 2017, K2 Enterprises, LLC. Reproduction or reuse for purposes other than a K2 Enterprises’ training event is prohibited. How Should Hosting Be Done? “Uptime. Support. Speed.”  Help desk manned with Senior-level engineers  90% of support tickets RESOLVED within 30 minutes  SOC 2/3 and HIPPA Compliant  Have Two-Factor Authentication  Geographically dispersed redundant data centers  Hybrid Cloud (option) = Best of both worlds

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Cetrom Real-time Replication = Redundancy

24 Copyright © 2017, K2 Enterprises, LLC. Reproduction or reuse for purposes other than a K2 Enterprises’ training event is prohibited. Windows In Public Cloud Data Centers  Google trying to compete with AWS, Azure, adds SQL Server Core and Windows Server Core for Google Compute Engine  http://www.zdnet.com/article/google-pushes-ahead- to-make-its-cloud-better-for-windows-enterprise-users/  Rackspace expanding offerings with Scale on Demand, Migration in Stages, Developer Resources, Unlimited Domains and more

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Productivity Apps  Office 365  Google G Suite  Zoho Docs  LibreOffice  More depth and motivation for a whole session  Is Office is going to win in the long run?

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25 Copyright © 2017, K2 Enterprises, LLC. Reproduction or reuse for purposes other than a K2 Enterprises’ training event is prohibited. CPA Firm Cloud Apps  AccountantsWorld Sage AccountantsCloud Accounting Power and  Payroll Relief  ShareFile  BillQuick Online  Thomson Onvio  Canopy Tax  Doc.IT Hosted  XCM  CCH - Axcess  Zoho  Intuit - QBO, ITO

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Cloud Accounting For Small Business  BQE/BillQuick Online  FreshBooks  Intuit QuickBooks Online  Sage One  Xero  Zoho Books

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26 Copyright © 2017, K2 Enterprises, LLC. Reproduction or reuse for purposes other than a K2 Enterprises’ training event is prohibited. Zoho Books Easy-to-use cloud accounting software for businesses.

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Key Features  Dashboard, Account Watch list  Accountant Module - Journals, COA, Sub-accounts  Invoice, Estimates, Sales Order, Purchase Order  Reports (Cash Flow Statement,  Credit Notes, Vendor credits P&L, Balance Sheet) - 40+  Recurring Invoices, Online Payment  Multi-currency, Inventory  Expenses, Bills  Workflows, Custom Fields  Recurring Expenses & Bills  Templates customization,  Bank Feeds, Bank Rules, Bank  Integrations with Zoho CRM, Zoho Reconciliation Projects, Zoho Expense, Zoho Inventory, Zoho Sheet

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27 Copyright © 2017, K2 Enterprises, LLC. Reproduction or reuse for purposes other than a K2 Enterprises’ training event is prohibited. Integrated Cloud-Based CRM/ERP  Acumatica  Dynamics 365 Business (NAV)  Dynamics 365 Enterprise (AX)  Epicor  Open Systems  Sage Live/Salesforce

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Microsoft Dynamics 365 for Financials

FUNCTIONALITY OVERVIEW

FINANCIAL INVENTORY SALES PURCHASING PROJECT ADDITIONAL MANAGEMENT MANAGEMENT MANAGEMENT CAPABILITIES

• GeneralLedger • Inventory • Sales Invoicing • Purchase Order • Job Management • Multiple Currencies • Account Receivables • Item Substitutions • Sales Order Management • Capacity Management • Dimensions • Account Payables • Returns and Management • VendorManagement • Budgets/Estimates • Document Reporting • Budgets Cancellations • Pricing and Discounting • Vendor Item Catalog • Basic Resources • Workflow • Account Schedules • Contact Management • Alternative Ship-to • Purchase Line Pricing • Import Online Currency • Bank Reconciliation • Opportunity Addresses • Purchase Invoice Discounts Rate Management • Purchase Line Discounting • Paypal Integration • Cash Flow Forecast • Shipping Agents • Drop Shipments • Interaction Management • Audit Trail • Check Writing • Document Management, • Electronic Payment • Non-stock Items • Sales Tax Capture, and OCR • Deferrals • Outlook Client Integration • Outlook Add-in • Fixed Assets • Contact Classification • Data Migration • Mail Logging for MS Exchange • Dynamics 365 for Sales Integration

*Features highlighted in grey will be expanded upon in the following pages

28 Copyright © 2017, K2 Enterprises, LLC. Reproduction or reuse for purposes other than a K2 Enterprises’ training event is prohibited. Liberating customers from traditional Business Apps Licensing

• Plans for Enterprise and SMB • Personalized for real world roles • Start with what you need – and grow • Simple and transparent

License by App License by Role License for team members

Operations Sales Operations Sales

Field Customer Service Service Field Customer Service Service

ERP With Fixed Scope Implementation  Acumatica  Epicor  Open Systems

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29 Copyright © 2017, K2 Enterprises, LLC. Reproduction or reuse for purposes other than a K2 Enterprises’ training event is prohibited. Hardware

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Storage

Big Changes For SSD, NAS And SANs

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30 Copyright © 2017, K2 Enterprises, LLC. Reproduction or reuse for purposes other than a K2 Enterprises’ training event is prohibited. SD & USB  SD high performance  Kingston DataTraveler microDuo 3 – 100MB/s and 15MB/s write  We transferred 3.5 GB in six seconds!  Kingston HyperX – 350 MB/s

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SSD – Solid State Drives  Samsung  Server/Data Center SSD’s  Client PC SSD’s  Non-Volatile Memory Express – NVMe on PCIe M.2  SATA top speed – 600 Mbps  12Gbps SAS top speed – 1.5Gbps  PCIe Gen3 x 4 – 4Gbps, but up to 16Gbps = 25x SATA

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31 Copyright © 2017, K2 Enterprises, LLC. Reproduction or reuse for purposes other than a K2 Enterprises’ training event is prohibited. NAS – Network Attached Storage  Seeing higher end capabilities.  Can run VM’s on many NAS, can run Storage Craft on the OS.  Many have workstation and even server grade processors.

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QNAP  New TS-531X 10 Gb units, $649 with 4 slots  Have i5, i7, Xeon in many units  Lower end NAS @$1K, seeing 10GB ports added to these boxes  New home router/gateway, has a slot for a 2.5” HDD/SSD  4-32 GB RAM on board depending on model, some scale up to 128GB  Launching Thunderbolt 3 on NAS, used in Hollywood for heavy video editing  QTS 4.3.3 (QNAP’s OS) is out, changed from 32-bit to 64-bit

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32 Copyright © 2017, K2 Enterprises, LLC. Reproduction or reuse for purposes other than a K2 Enterprises’ training event is prohibited. Synology  High end gear is better, big rack mount is the story  FS 2017, $8K for base unit, can have 250+ drives. Base unit has 64GB RAM, dual 6-core Xeon processors. Technical person at CES told us demo unit had 1.8 petabytes of SSD storage (!!!)

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Consumer NAS Suppliers  Drobo  NetGear  Western Digital – WD MyCloud

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33 Copyright © 2017, K2 Enterprises, LLC. Reproduction or reuse for purposes other than a K2 Enterprises’ training event is prohibited. SAN – Storage Area Networks  Predictive SANs – Shouldn’t be used in CPA firms  Nimble acquired by HP  Flash/SSD more common, almost mandatory  EMC (VNX/VNXe), NetApp (FAS and E Series), HP (3Par StoreServ, StorVirtual), Dell (Compellent, EqualLogic), IBM (DCS, DS, Storwize)

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CPUs

AMD Is Competitive For The First Time In A Decade

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34 Copyright © 2017, K2 Enterprises, LLC. Reproduction or reuse for purposes other than a K2 Enterprises’ training event is prohibited. Chip Market Evolving Rapidly  Intel’s near monopoly on CPU’s for Windows/Mac computers is in doubt for the first time in many years. Intel  has announced a THIRD wave of its 14 nm chips – Coffee Lake (8th gen) to respond to AMD and fill the gap  is experiencing issues making new 10 nm chips (Cannon Lake, due in 2018)  forced to delay 10nm chips (Cannon Lake) and release third revision of 14 nm chips (Coffee Lake)  New AMD Ryzen chips have competitive performance, but they are very new and unproven

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AMD’s Ryzen, Naples, And Raven Ridge CPUs Coming To A Computer Near You Soon  Ryzen 7-series (desktop PC) - 8 cores, 16 threads, up to 4 GHz clock speed

 Ryzen 5-series (desktop PC) - 4 or 6 cores, 8 or 12 threads, up to 4 GHz clock speed

 Ryzen 3-series (desktop PC) - Value-priced chip for home, no PCWorld’s Guide specs released, expected 2H 2017 to AMD Ryzen

 Naples (server) expected in Q2 2017

 Raven Ridge (notebook PC) expected 2H 2017

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35 Copyright © 2017, K2 Enterprises, LLC. Reproduction or reuse for purposes other than a K2 Enterprises’ training event is prohibited. AMD’s Ryzen, Naples, And Raven Ridge CPUs Windows 10 and Linux ONLY  AMD WANTED Ryzen to support Windows 7, 8, 8.1, and 10, while having performance comparable to (and in some cases better than) Intel’s Skylake processors (6th gen) PCWorld’s Guide  Microsoft WILL NOT support Ryzen on Windows to AMD Ryzen 7, 8, 8.1  Cooling appears to be a concern with some models of these chips

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Intel Processor Support By Windows  7th Gen Intel Core (Kaby Lake) - Windows 10 only  Limited support for Windows 10 on 6th Gen  Guaranteed Win 7 support on 4th-5th gen processors  Mobile chips –more watered down than in the past, but this remains to be seen

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36 Copyright © 2017, K2 Enterprises, LLC. Reproduction or reuse for purposes other than a K2 Enterprises’ training event is prohibited. Windows Server On ARM Processors  Microsoft to deploy Windows Server on ARM processors for exclusive use in Azure data centers  Windows 10 on ARM processors for consumers with Win32 emulation built-in (Q4 2017)  Many unconfirmed rumors that MacOS may run on ARM chips in near future

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Intel Chip Families Available In Market

Year Processor Processor Transistor RAM Initially Size Notes Generation Family Name Support Released (“Process”) 5th 14 nm • Last processor which is fully supported in Windows 7 and Broadwell 2014 DDR3 (i7-5xxx) (Tick) earlier for all PC models 6th 14 nm DDR4/ • Last processor which is supported for use with Windows 7 Skylake 2015 (i7-6xxx) (Tock) DDR3L (limited number of models) 7th 14 nm DDR4/ • First processor which is unsupported for Windows 7/8.1 Kaby Lake 2016 (i7-7xxx) (Tock) DDR3L • First refinement to 14 nm process • Second refinement to 14 nm process 8th Unreleased; 14 nm Coffee Lake expected in DDR4 • Some analysts conclude that these chips are being rushed to (i7-8xxx) (Tock) 2H 2017 market to compete with AMD’s new Ryzen chips

Unreleased; 10 nm • Have had manufacturing problems with this new transistor ??? Cannon Lake expected in DDR4 1H 2018 (Tick) size, and yields of usable chips lower than expected 10 nm ??? Icelake 2019 Unknown • First revision to 10 nm process chips (Tock) Source: Compiled by K2 from various industry sources

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37 Copyright © 2017, K2 Enterprises, LLC. Reproduction or reuse for purposes other than a K2 Enterprises’ training event is prohibited. Intel Chip Families Available In Market

Year Processor Processor Transistor RAM Initially Size Notes Generation Family Name Support Released (“Process”) 5th 14 nm • Last processor which is fully supported in Windows 7 and Broadwell 2014 DDR3 (i7-5xxx) (Tick) earlier for all PC models 6th 14 nm DDR4/ • Last processor which is supported for use with Windows 7 Skylake 2015 (i7-6xxx) (Tock) DDR3L (limited number of models) 7th 14 nm DDR4/ • First processor which is unsupported for Windows 7/8.1 Kaby Lake 2016 (i7-7xxx) (Tock) DDR3L • First refinement to 14 nm process • Second refinement to 14 nm process 8th Unreleased; 14 nm Coffee Lake expected in DDR4 • Some analysts conclude that these chips are being rushed to (i7-8xxx) (Tock) 2H 2017 market to compete with AMD’s new Ryzen chips

Unreleased; 10 nm • Have had manufacturing problems with this new transistor ??? Cannon Lake expected in DDR4 (Tick) size, and yields of usable chipsth lower than expected We think most 2H1H 2018 2017 hardware purchases will use 6 generation – th 10 nm ??? Icelake8 generation2019 IntelUnknown Core i5• orFirst Corerevision i7to 10 processors nm process chips (Tock) Source: Compiled by K2 from various industry sources

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14 NM Intel Chips

SKYLAKE KABY LAKE COFFEE LAKE (i5-6xxx or i7-6xxx) (i5-7xxx or i7-7xxx) (i5-8xxx or i7-8xxx)

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38 Copyright © 2017, K2 Enterprises, LLC. Reproduction or reuse for purposes other than a K2 Enterprises’ training event is prohibited. 7th Gen (Kaby Lake) / 8th Gen (Coffee Lake) Intel Processors 7th Gen Kaby Lake Processors 8th Gen Coffee Lake Processors • 14 nm, same as Skylake, Broadwell • 14 nm, same as Skylake, Broadwell • th • Intel promises a 15% increase in 12% faster than 6 gen Skylake from performance over Kaby Lake (7th gen) 2015, same LGA1151 socket • Weren’t expected to exist, but the • 3-D graphics 3.5 faster than 5 year old threat from AMD’s new Ryzen chips Sandy Bridge, 8.6 x faster on 360 video and continued issues with 10 nm transistor chips forced Intel’s hand • K/T Series Desktop 4 cores, 4-8 threads • Y Series Mobile • Mobile – 2 cores, GT2 graphics – Y series: Unknown (ultra-low power) • U Series Desktop – U series: 2 cores, 4 threads (normal users) – 2 cores, GT3e/GT2 graphics – H series: 4 cores, 8 threads (workstations) • H-Series Desktop (2018) – 6 cores, GT3e graphics

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Global PC Shipments, 2006-2016

400.0 20.0%

350.0 15.0%

300.0 10.0% 250.0 5.0% 200.0 0.0% 150.0 (Source: Gartner) (Calculated (Calculated redline) 100.0 -5.0% -10.0%

Global PCShipments, Millions of Units 50.0

-15.0% Change Global in PCShipments OverYear Year - 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Global PC Sales 239.2 272.5 290.8 308.3 350.9 365.4 351.1 316.5 313.7 287.7 269.7 YOY Δ 13.9% 6.7% 6.0% 13.8% 4.1% -3.9% -9.9% -0.9% -8.3% -6.2%

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39 Copyright © 2017, K2 Enterprises, LLC. Reproduction or reuse for purposes other than a K2 Enterprises’ training event is prohibited. Personal Computers, Ultrabooks, and Tablets Forecasted Shipments Through 2019 500 450 400 350 168 165 166 166 300 250 49 61 74 85 200 (Source: Gartner) (Source: 150 219 Global PC Shipments, Millions Units Millions of Global PCShipments, 100 205 198 193 50 0 2016 2017(E) 2018(E) 2019(E) Traditional PCs (Desk-Based and Notebook) Ultramobiles (Ultrabooks) (Premium, x86) Source: Gartner press release 1/4/2017 Ultramobiles (Basic and Utility ARM Tablets) http://www.gartner.com/newsroom/id/3560517

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Computers  HP Workwise – PC Management from mobile device  Lets users do some management tasks from their smartphones  Locking PC when phone not within Bluetooth proximity  Tamper protection, reporting of what was changed  Optional built-in HIPAA/hardware security filter  Intel RealSense camera for Windows Hello  Finger Print Reader (new gen, can be add-on)  Look for mil-spec for minimal drop damage

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40 Copyright © 2017, K2 Enterprises, LLC. Reproduction or reuse for purposes other than a K2 Enterprises’ training event is prohibited. Other PC examples  Dell – XPS 13, 15 and 2-In-1  Lenovo –ThinkPad X1 Carbon, T460s, Yoga 900 

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Microsoft Surface: The Empire Strikes Back

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41 Copyright © 2017, K2 Enterprises, LLC. Reproduction or reuse for purposes other than a K2 Enterprises’ training event is prohibited. $2,999-$4,199 • 13.5” (3000x2000) • 12.3” (2736x1824) • 28” Pixelsense Touch • 3.34-3.63 lbs. • 1.73 pounds screen (4500x3000) • 128GB – 1TB drives • 8 or 16GB RAM • 128GB – 1TB drives • Screen pivots at low angle • 12 hour battery • 4, 8 or 16GB RAM for touchscreen work • Intel i5 or i7 processor • 9 hour battery • 1-2 TB SSD • Full size keyboard • 8, 16, or 32GB RAM • New “performance base” • Intel Core M, i5 or i7 on prem models has 16 hr. • Intel i3, i5 or i7 (6th gen) battery life

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Configuring A Computer For You  Pick 6th-8th generation Intel i5/i7/Xeon processors  Possibly new AMD  Avoid i3, Atom, Celeron  Other specs  Solid State Drive (256 GB+) - M.2 NVMe  8-16 GB RAM  Stick with business grade/workstation grade hardware

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42 Copyright © 2017, K2 Enterprises, LLC. Reproduction or reuse for purposes other than a K2 Enterprises’ training event is prohibited. Displays Monitors Made Surprising Progress  Quantum Dots – Improved color from sides   Wide, curved, portrait, easel angled, size increased  HP SureView – add-on which functions like a HIPAA filter – in new EliteBook models, use func-F2 to activate. SureView requires both hardware and firmware to operate, and includes some special items in the display to eliminate the need for HIPAA filters.  DisplayLink adds Chrome OS, now supports Windows, MacOS, Android, Linux, and Chrome OS

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Security Update – Queen Of Multifactor Fobs - Stina Ehrensvard

Pic with Stina

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43 Copyright © 2017, K2 Enterprises, LLC. Reproduction or reuse for purposes other than a K2 Enterprises’ training event is prohibited. Security Issues Inevitable  Steve McConnell, a programming guru, says source code has between  Lines of code ten and 50 errors in every 1,000 lines.  Vinton Cerf says the net needs a layer of additional software half a million lines long to keep things like credit- card details safe.  “The default assumption is that everything is vulnerable,” says Robert Watson, a computer scientist at the University of Cambridge.  CHERI – hardware to run code securely in sandboxes The Economist April 8, 2017

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Security Vulnerabilities  In February, researchers at Ben-  Department of Defense (DoD), Gurion University, in Israel, Peter Singer says, has found showed that they could get data significant vulnerabilities in every out of a compromised computer weapon system it examined. by using the light that shows whether the hard drive is working  Vinton Cerf, one of the internet’s to send those data to a watching pioneers, talked about building drone. encryption into it in the 1970s he says his efforts were blocked by  The NSA is widely believed to have America’s spies, who saw built deliberate weaknesses into cryptography as a weapon for some of its favored encryption nation-states. technologies.

The Economist April 8, 2017

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44 Copyright © 2017, K2 Enterprises, LLC. Reproduction or reuse for purposes other than a K2 Enterprises’ training event is prohibited. Security Remedy?  The ubiquity of cyber-attacks, and the  “The industry will fight any attempt to seeming impossibility of preventing impose liability absolutely tooth and them, is persuading big companies to nail,” says Mr. Grossman. turn to an old remedy for such unavoidable risks: insurance.  Kenneth White, a cryptography researcher in Washington, DC, warns  “The cyber-insurance market is worth that if the government comes down something like $3bn-4bn a year,” says too hard, the software business may Jeremiah Grossman of SentinelOne. end up looking like the pharmaceutical industry, where tough,  “A report published in 2015 by PwC, a ubiquitous regulation is one reason management consultancy, found that why the cost of developing a new drug a third of American businesses have is now close to a billion dollars. cyber-insurance cover of some kind, though it often offers only limited protection.” The Economist April 8, 2017

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WannaCry? May 12-15+, 2017  20% of hospitals in the United  Attack source believed to be North Korean Kingdom  The Equation Group, found or purchased previously undiscovered flaws in Microsoft  300,000 victims in 157 countries Windows code and used them to create cyber-snooping and infiltration tools  Marcus Hutchinson “MalwareTech” shut down the  In August 2016, a group calling itself The Shadow Brokers began posting materials attack for $10.69 from that stolen cache of programs online  $300, only $83,000 paid so far,  April 14 of this year that contained an estimated $4B impact exploit (flawed computer code that can be used to craft cyberweapons) called  Exploits SMBv1 on port 445 EternalBlue.  was issued March 2017

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45 Copyright © 2017, K2 Enterprises, LLC. Reproduction or reuse for purposes other than a K2 Enterprises’ training event is prohibited. Managed Security Devices  Home routers with subscriptions for monthly service <$10  Symantec’s Norton Core (shown)  Cujo (venture funded, $249 with one yr. service, or $99, plus $10/mo.)  BitDefender

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What is a Mesh Network?

• Traditional networks are hub and spoke networks, where wireless is used to connect to clients only. – Infrastructure nodes like access points and switches are used to consolidate traffic back to the router over fixed connections • In a mesh network, wireless or wired connections are used to connect infrastructure to each other with dynamic rerouting – Backhaul traffic can be sent over wires OR over Wi-Fi, and each node can participate in the transmission of data for other nodes – In a mesh network, nodes speak to each other as needed over wi-fi without the centralized path connections of a traditional network

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46 Copyright © 2017, K2 Enterprises, LLC. Reproduction or reuse for purposes other than a K2 Enterprises’ training event is prohibited. Mesh Networks •Amplifi (by Ubiquiti) •Luma •Eero •NetGear Orbio •Google Wi-Fi •Many more

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1 minute 22 seconds a phish: median time-to-first-click

Verizon 2015 Data Breach Investigations Report (DBIR)

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47 Copyright © 2017, K2 Enterprises, LLC. Reproduction or reuse for purposes other than a K2 Enterprises’ training event is prohibited. • You have an M in your company name You are at • You showcase your senior employees risk if… • You accept resumes on your • You pay bills by wire transfer • You have a team in finance • You have a LinkedIn profile • Your life is deemed interesting enough to be on

URL Protect Mimecast with URL rewriting and dynamic user Targeted Threat awareness Protection

Attachment Protect with document conversion, on-demand and pre-emptive sandboxing

Comprehensive protection, simply achieved in the cloud Impersonation Protect with dedicated detection of whaling and malware-less phishing

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48 Copyright © 2017, K2 Enterprises, LLC. Reproduction or reuse for purposes other than a K2 Enterprises’ training event is prohibited. Mimecast delivers uninterrupted email

Live Emails Archive Search

Calendar Info Consistent Security

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Uninterrupted email access • ‘Invisible’ switchover within Outlook powered by the • Emergency notifications (SMS) for mobile and web users • Immediate failover and failback cloud • Calendar and folder structure replication; distribution list Protecting against: support • System failure • Archive access maintained during outages • Natural disasters • On-premises, hosted, cloud and hybrid mail support • Security incidents • Multiple authentication options, including two-factor • Planned maintenance • 100% service availability SLA • Human error • Upgrade and migration risks

49 Copyright © 2017, K2 Enterprises, LLC. Reproduction or reuse for purposes other than a K2 Enterprises’ training event is prohibited. • Comprehensive compliance, e-discovery and litigation Archive email support and data • Rapid search and access in seconds on any device, safely in the anywhere • Encrypted, in-triplicate storage in geographically defined cloud with data centers; full audit logging and tamper-resistant chains Mimecast of custody • Data assurance and recovery for cloud email Retire legacy on-premises • Flexible policy-driven retention applied at organization, archives group, mailbox and folder level • Rapid, low cost data ingestion

Maturity Of An Idea

Analyze

Implement

Test

Develop

Conceive

50 Copyright © 2017, K2 Enterprises, LLC. Reproduction or reuse for purposes other than a K2 Enterprises’ training event is prohibited. Industrialization Of Knowledge  Conceive idea – Sketch on a yellow pad  Develop a solution – Paper, Excel  Initial implementation – Forms, Excel  Refine and improve – May be manual, config  Automate – Customize, off the shelf solution

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Industrialization Of Knowledge Work An Evolution Over Time Predictive Analytics: Automate, Intelligence: Maximize Track, Automation: Understand, Efficiency, Standardize, and Manage and Predict Process Tracking: Simplify, and Know What is Quality Future Specialize Occurring Outcomes

As Work is Industrialized, More of It Can Be Performed By Less Knowledgeable Team Members at Lower Cost

51 Copyright © 2017, K2 Enterprises, LLC. Reproduction or reuse for purposes other than a K2 Enterprises’ training event is prohibited. Maturity Curve From Command Line To Cortana

Windows Windows 10 Windows 7 DOS 3.11 Sophistication

Time

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Intel Processors Maturity Curve

iCore X Pentium 80386 8088 Sophistication

Time

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52 Copyright © 2017, K2 Enterprises, LLC. Reproduction or reuse for purposes other than a K2 Enterprises’ training event is prohibited. Workflow Process Maturity Curve

Predictive Analytics Intelligence Automation Process Tracking Sophistication

Time

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Don’t Buy The Hype

A look at Gartner’s 2016 Hype Cycle for Emerging Technologies

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53 Copyright © 2017, K2 Enterprises, LLC. Reproduction or reuse for purposes other than a K2 Enterprises’ training event is prohibited. Hype Cycle

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Technology Adoption In 2-5 Years  Machine Learning  Software Defined Anything (SDx)  Natural Language Question Answering

 Much more likely in the near term

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54 Copyright © 2017, K2 Enterprises, LLC. Reproduction or reuse for purposes other than a K2 Enterprises’ training event is prohibited. Machine Learning  First step to many other technologies, in its infancy today  Before your computer can be as smart as you, it has to first be as smart as your dog, your child, and finally, your teenager  Reports that a teenager is actually technologically smarter than you are is “fake news” and, in the words of Mark Twain, “greatly exaggerated”  Will make many other technologies (voice interfaces, expert systems, self-driving cars, personal assistants, smart robots, and advanced analytics) much more effective/ possible

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Machine Learning Will Require New Chips And Massive Investment – Cloud TPUs • Accelerators for key tasks • Google’s Tensor Processing Unit or TPU, in development 2 years • Replaced in May 2017 as TPU2 with four processors – 45 Tflops, 64 boards in a TPU pod for 11.5 Petaflops • Order of magnitude better performance per watt for machine learning tasks • Used on the paid RankBrain search result sorting service and paid Google Voice • Microsoft has similar strategy using Field Programmable Gate Arrays (FPGA’s) in its Azure data centers

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55 Copyright © 2017, K2 Enterprises, LLC. Reproduction or reuse for purposes other than a K2 Enterprises’ training event is prohibited. Software Defined Anything (SDx)  “Software-defined anything (SDx) is an important yet ambiguous term that refers to new changes happening in the IT world  It is a movement toward promoting a greater role for software systems in controlling different kinds of hardware - more specifically, making software more "in command" of multi-piece hardware systems and allowing for software control of a greater range of devices Source: https://www.techopedia.com/definition/29658/software-defined-anything-sdx

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Software Defined Anything (SDx)  Another way of saying this is that SDx is what you have when hardware, software, storage, network, data center, as well as virtual machines, containers, public data centers/on demand computing and ubiquitous connectivity work seamlessly  These environments are extremely difficult to configure, but when properly configured, it requires less human intervention to manage these systems, and provide greater IT agility

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56 Copyright © 2017, K2 Enterprises, LLC. Reproduction or reuse for purposes other than a K2 Enterprises’ training event is prohibited. “Telecomulonimbus”  Cloudification of telecom networks – barrier is spectrum according to John Delaney of IDC  NFV – Network functions virtualization  SDN – Software defined networks  5G networks require more flexible networks  AT&T will have more than half of its network virtualized by then end of 2017  AT&T has released their software as Open Source

 Facebook behind Telecom Infra Project The Economist. April 15, 2017

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Natural Language Question Answering  Natural-language understanding (NLU) is the comprehension by computers of the structure and meaning of human language (e.g., English, Spanish, Japanese), allowing users to interact with the computer using natural sentences  NLQA is understanding data from an NLU, and then crafting a response

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57 Copyright © 2017, K2 Enterprises, LLC. Reproduction or reuse for purposes other than a K2 Enterprises’ training event is prohibited. Natural Language Question Answering  Examples of virtual assistants and NLQA platforms include  Alexa  Siri  Google Now  Cortana  Bixby  You don’t have to have a virtual assistant to have NLQA – VA’s are just a UX associated with NLQA technology  NLQA is available in a limited fashion in Microsoft Power BI

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1. Less Stupid Systems (not smart yet, but not useless either)  Automated document retrieval (FileThis, Hubdoc, Receipt Bank)  Process tracking, automation, intelligence, and then predictive analytics (from earlier diagram)  Voice interface and digital assistant 1.0 is here, but they are a long way from being useful on a regular basis  Yelling “Alexa, play Blue Oyster Cult” or “Alexa, what’s the weather” and getting a limited response is a long way from something really useful  But the technology is improving. Remember that HAL 9000 in 2001, A Space Odyssey (one of Brian’s favorite movies) became operational in 1992 in the movie (1997 in the book). It will likely take years to get the UX to be more efficient.

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58 Copyright © 2017, K2 Enterprises, LLC. Reproduction or reuse for purposes other than a K2 Enterprises’ training event is prohibited. 1. Less Stupid Systems (Cont’d)  Some strategic changes are out there with machine learning, machine intelligence, but most are 5+ or even 10+ years from being adopted in the mainstream  Self-driving cars  Drones (although discussion of PoC with van, drones is interesting)  IoT is here, but is highly vulnerable. The platforms are still a problem for even advanced users, and make your firewall into swiss cheese  You will need to watch carefully to avoid being roadkill on the disruption superhighway

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2. Some Of The Strategic Changes…  Will never see the light of day in consumer services  Machine learning in loan underwriting, for example, will likely never end up in a consumer product, even though it will be used by banks  This will most likely be productized by the credit bureaus and other data brokers

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59 Copyright © 2017, K2 Enterprises, LLC. Reproduction or reuse for purposes other than a K2 Enterprises’ training event is prohibited. Future Technologies

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Memory Chips Video Collaboration 5G Cellular

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60 Copyright © 2017, K2 Enterprises, LLC. Reproduction or reuse for purposes other than a K2 Enterprises’ training event is prohibited. Combination CPU/Memory  Economist Mar 2, 2017  Panasonic, Fujitsu, HP, SanDisk and Crossbar (a Californian startup), have begun manufacturing ReRAM chips  Resistive Random Access Memory – ReRAM

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Video Collaboration / Distance Meetings  Many new products in market, all expensive  Microsoft  SMART kapp iQ + Pro  Google Jamboard  Cisco Spark Board

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61 Copyright © 2017, K2 Enterprises, LLC. Reproduction or reuse for purposes other than a K2 Enterprises’ training event is prohibited. Microsoft Surface Hub

• Touch screen display designed for brainstorming and collaborating with teams remotely • Integrates with OneNote, for Business, and Office • Can also run Universal Apps for Windows 10 • 55” 1080p is $8,999 • 84” 4K display is $22K

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Interactive White Board Or Touch Screen Conference Room Display • SMART kapp iQ + Pro • 65” $4,999 • 87” $5,499 • Ultra HD Display - $6,799+ • SMART Room System • From a single 55" display all the way up to a dual 84" configuration, with 6 sizes to choose from, SMART can accommodate any meeting room size or need • $17,999+

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62 Copyright © 2017, K2 Enterprises, LLC. Reproduction or reuse for purposes other than a K2 Enterprises’ training event is prohibited. Cisco Spark Board  55” touch screen, 70” available late 2017  86 degree viewing angle  Capacitive touch screen  12-element microphone array and built-in 4K video camera  55” MSRP $4,990 + $199/mo.  70” MSRP $9,990 + $199/mo.

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Artificial Intelligence – Future Fuel?  Data is to this century what oil was to the last  180 zettabytes of data each year (180 with 21 0’s)  Amazon uses trucks with containers to move 100 Petabyte backups – not enough comm. Speed  Uber value from data about drivers and passengers  Data driven start-ups are the wildcatters The Economist May 6, 2017

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63 Copyright © 2017, K2 Enterprises, LLC. Reproduction or reuse for purposes other than a K2 Enterprises’ training event is prohibited. – Data Deals  Facebook – Instagram 2012, WhatsApp 2014  Alphabet – Waze 2013  IBM – The Weather Company 2015, Truven Health  Intel – Mobileye 2017  Microsoft – Swiftkey 2016, LinkedIn 2016  Oracle – BlueKai 2015, DataLogix 2014 The Economist May 6, 2017

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Artificial Intelligence – Where?  GE – Predix to control machinery  Siemens  Britain’s National Health Service and Alphabet’s DeepMind swapping anonymous patient data  But can’t find an easy way to trade data value (data brokers) as commodities or the stock market The Economist May 6, 2017

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64 Copyright © 2017, K2 Enterprises, LLC. Reproduction or reuse for purposes other than a K2 Enterprises’ training event is prohibited. Virtual Reality vs. Augmented Reality  Augmented reality is a supplement to the real world, such as Microsoft Hololens for anatomy  Virtual Reality is an immersive substitute for the real world, for example surgeons performing operations without patients  Smartphones are likely  To deliver AR via Facebook, Apple iOS and Google initiatives  To deliver VR via the phone screen like Google Cardboard

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Analytics  Wolfram|Alpha Personal Analytics for Facebook  BizNet InSight  Power BI  Forecast5  Tableau  Qlik

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65 Copyright © 2017, K2 Enterprises, LLC. Reproduction or reuse for purposes other than a K2 Enterprises’ training event is prohibited. Data Lakes  A data lake is a method of storing data within a system or repository, in its natural format  Facilitates the collocation of data in various schemata and structural forms, usually object blobs or files.  The idea of data lake is to have a single store of all data in the enterprise ranging from raw data (which implies exact copy of source system data) to transformed data which is used for various tasks including reporting, visualization, analytics and machine learning.

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5G  Spoke with Qualcomm again this year  FCC approval will be needed for the 30 GHz spectrum which this will use  New spectrum has an outdoor line of sight distance of 200-300m instead of the 1km++ available for current LTE  5G uses mesh networks by default, so although additional POPs will be needed, it will be less important that they have any infrastructure other than power  Signal will penetrate walls much less than current, slower/lower frequency spectrum used, so will need to have indoor femtocells at home and at work  5G will use IPv6 by default, T-Mobile nationwide…Verizon in 11 markets…

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66 Copyright © 2017, K2 Enterprises, LLC. Reproduction or reuse for purposes other than a K2 Enterprises’ training event is prohibited. Machine Learning, Drones, And Self-Driving Cars

Hype! Self-Driving Cars Are Fun To Talk About, Hard To Deploy

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Hype Reality Check  Machine learning is hard, but people are experimenting  Tensor and FPGA’s = Google/Microsoft strategies  At the absolute apex of Gartner Hype cycle for Emerging Techs, they think it's 2-5 years before mainstream adoption  Intuit, Xero, Microsoft, others are working on it  D365 Sales/Inventory Forecast  General Purpose Machine Intelligence is still in innovation trigger phase, >10 years before mainstream adoption

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67 Copyright © 2017, K2 Enterprises, LLC. Reproduction or reuse for purposes other than a K2 Enterprises’ training event is prohibited. Machine Learning  What IS starting to flow into your online profile is social media and other public information about you  Credit bureaus having trouble maintaining data properly, will stop showing some liens/judgments against someone’s profile unless they contain 3 of 4 of: name, SSN, DOB, and address  Solving this integration problem is going to be harder than everyone thinks, and will take many years

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Self-Driving Cars  Ford – spoke with an engineer that said the reason for using a hybrid was that the hardware needed to process all of the sensors draws a lot of electricity. We asked him which drew more power – the computers or the drive train, and he said he wasn’t sure.  Note roof rack has cameras built in, also note LIDAR sensors above the side view mirrors  Self-Driving - NVidia AI computer for cars  Note Alexa integration and car connection to IoT devices at home/work.

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68 Copyright © 2017, K2 Enterprises, LLC. Reproduction or reuse for purposes other than a K2 Enterprises’ training event is prohibited. Copyright © 2017, K2 Enterprises, LLC. Reproduction or reuse for purposes other than a K2 Enterprises' training event is prohibited.

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69 Copyright © 2017, K2 Enterprises, LLC. Reproduction or reuse for purposes other than a K2 Enterprises’ training event is prohibited. What Does LIDAR Imaging Look Like?

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Self Driving Trucks – Uber’s Otto  Oct 20, 2016  Colorado Springs  50,000 cans of Budweiser  Origin Loveland, CO  Volvo  Used LIDAR

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70 Copyright © 2017, K2 Enterprises, LLC. Reproduction or reuse for purposes other than a K2 Enterprises’ training event is prohibited. Flying Jet Taxis?  German Startup Lilium  Five seat electric jet  Take off/land vertically  186 m.p.h.  First test flights completed in Bavaria

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Ground Drones For Package Delivery

• Skype co-founders build delivery bot that rides on sidewalks • They've created a company called Starship Technologies, and its eponymous robots are autonomous rovers that drive along sidewalks to carry packages at an average speed of 4mph • The aim is to deliver "two grocery bags" worth of goods (weighing up to 20lbs) in 5-30 minutes for "10-15 times less than the cost of current last-mile delivery alternatives.“ • Dominos DRU – Australia • Amazon Drone delivery later…

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71 Copyright © 2017, K2 Enterprises, LLC. Reproduction or reuse for purposes other than a K2 Enterprises’ training event is prohibited. Blockchain  A solution in search of a problem, most hindrances to adoption are really lack of need  It is a top 10 strategic tech from Gartner, and enterprise attendees should watch for innovations in 2017 and beyond  We are seeing some discuss the addition to Blockchain to a general ledger as creating a “triple entry system”  Acumatica has announced they are integrating with Acronis A-sign and Acronis Notary

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Technology Adoption 5-10 Years  802.11ax  Smart Workspace  Context Brokering  Conversational User Interfaces  Data Broker PaaS  Virtual Personal (dbPaas) Assistants  Quantum Computing  Smart Data Discovery  Personal Analytics  Affective Computing

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72 Copyright © 2017, K2 Enterprises, LLC. Reproduction or reuse for purposes other than a K2 Enterprises’ training event is prohibited. Technology Adoption 5-10 Years  Commercial UAV's  Software Defined (Drones) Security  IoT Platform  Connected Home  Gesture Control Devices  Cognitive Expert Advisors  Micro Data Centers  Nanotube Electronics  Smart Robots  Augmented Reality  Blockchain  Virtual Reality

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Technology Adoption > 10 Years  Smart Dust  Volumetric Displays  General Purpose  Brain-Computer Machine Intelligence Interface  4-D Printing  Autonomous Vehicles  Enterprise Taxonomy  Neuromorphic and Ontology Hardware Management

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73 Copyright © 2017, K2 Enterprises, LLC. Reproduction or reuse for purposes other than a K2 Enterprises’ training event is prohibited. K2 Summit Products

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Top Desktop Computer Products

Computers Displays • HP • HP • Dell • Samsung • Lenovo • LG UPS Surge • Eaton • APC • Liebert • APC

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74 Copyright © 2017, K2 Enterprises, LLC. Reproduction or reuse for purposes other than a K2 Enterprises’ training event is prohibited. Top Mobile Computer Products

Laptops Tablets • HP • Apple • Microsoft • Microsoft • Dell • Dell Docking Stations Phones • HP • Apple • Lenovo • Samsung • Dell • Google

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Top Peripheral Products

Printers Scanners • HP • Canon • Lexmark • Fujitsu Keyboards Mice • Logitech • Logitech • Microsoft • Microsoft

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75 Copyright © 2017, K2 Enterprises, LLC. Reproduction or reuse for purposes other than a K2 Enterprises’ training event is prohibited. Top Small Business Products

Accounting (Desktop) Accounting (SaaS) • QuickBooks • QuickBooks Online • Sage 50 • Zoho • Open Systems • Sage One Expenses Bill Payment • Concur • Bill.com • Zoho • Zoho • Tallie • Accounting Power • Expensify

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Top Mid-Market Products

Accounting (Desktop) Accounting (SaaS) • Epicor • Sage Live, 300c, X3 • Sage (100, 300, X3) • Dynamics 365 • Dynamics (GP, NAV, AX) • Acumatica • Open Systems TRAVERSE • Acumatica BI/Reporting CRM • BizNet • Dynamics CRM • PowerBI • Acumatica CRM • Sage Intelligence • Zoho CRM • Tableau • Salesforce

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76 Copyright © 2017, K2 Enterprises, LLC. Reproduction or reuse for purposes other than a K2 Enterprises’ training event is prohibited. Top CPA Firm Products

Accounting Write-Up Audit/Trial Balance • QuickBooks • CCH Engagement • Accounting CS • CaseWare • Engagement CS Practice Management Tax Preparation • CCH Practice • CCH ProSystem fx Management • Lacerte • Commercial Logic • CCH Axcess Tax • Practice CS • UltraTax CS

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Top CPA Firm Products Cont’d

Tax Planning 1040 Workpaper • BNA • SurePrep • CCH • CCH Scan & AutoFlow • Doc.It Portal Research • ShareFile • CCH IntelliConnect • CCH Portal • RIA CheckPoint • NetClient CS • BNA

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77 Copyright © 2017, K2 Enterprises, LLC. Reproduction or reuse for purposes other than a K2 Enterprises’ training event is prohibited. Strange But True

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Grill Bot  Don’t like scrubbing your grill? No problem  Three motors  Brass, stainless steel, or nylon brush options  $129.95 MSRP

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78 Copyright © 2017, K2 Enterprises, LLC. Reproduction or reuse for purposes other than a K2 Enterprises’ training event is prohibited. 3-D Printed Cars  Local Motors, Knoxville, Tennessee

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79 Copyright © 2017, K2 Enterprises, LLC. Reproduction or reuse for purposes other than a K2 Enterprises’ training event is prohibited. Foldimate

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Foldimate Step 1: Clip Clothes in place

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80 Copyright © 2017, K2 Enterprises, LLC. Reproduction or reuse for purposes other than a K2 Enterprises’ training event is prohibited. Foldimate Step 2: Robotic Folding

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Griffin Connected Toaster  Lets you control toasting time with an app  Can be paired with many, many phones (think CPA Firm break room)  Can save settings for different preferred settings (e.g. plain bagel, poppy seed bagel, sesame seed bagel, etc.)

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81 Copyright © 2017, K2 Enterprises, LLC. Reproduction or reuse for purposes other than a K2 Enterprises’ training event is prohibited. Mercedes Concept Van  Two drones on roof  Automated loading of parcels by warehouse robots inside of a self- driving van

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Amazon Drone Delivery

• Amazon Landing Pad

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Thank You!

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