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Why Cloud Computing is
Changing the Way we do Business
Presented By: Chuck Jerome
BAASS Connect 2013 - Why Cloud Computing is Changing the way we do Business
Evaluating Change
• Does it align with or
support our strategy?
• Important to evaluate
technology to
determine if it meets
the needs of the
business
Cloud: Option or Impending Future
What is Cloud Computing?
We’re All Using the Cloud
•Social Media Marketing
•Facebook & Twitter
•YouTube
•LinkedIn

•Banking/Finance/Investment
•Online banking
•E-Trade
•Fidelity

•Data Back-Up and Storage
•DropBox
•iCloud
•Carbonite, CrashPlan

•Productivity Tools
•Google Apps
•Microsoft Office 365
The Game is Changing
• 7 out of 10 companies that use cloud services will
move more applications – Source: MimeCast
• By year end 2016, more than 50% of Global 1000
Companies will have stored customer-sensitive
data in the public cloud – Source: IDC
• By year end 2016, one third of all digital content
will be stored on the cloud - Source: Gartner
3 Levels of Cloud Delivery
Function

SaaS

PaaS

IaaS

Service

Software

Platform

Infrastructure

Hardware

Vendor

Vendor

Vendor

Operating Systems

Vendor

Vendor

Optional

Databases

Vendor

Vendor

Optional

Application

Vendor

Customer

Customer

Management

Vendor

Vendor

Customer

Backups

Vendor

Vendor

Customer

Example

Sage

Amazon, MS Azure

3rd Party
Understanding All Models
On-Premise

3rd Party Hosted

Hosted

SaaS

Hosting

You

3rd Party

Publisher

Publisher

Licences

Perpetual

Subscription

Subscription

Subscription

Purchase

CAPEX

OPEX

OPEX

OPEX

Solution

Open

Open

Limited

Strict

Customization

Unlimited

Unlimited

Limited

None

Examples

Sage 300 local

Amazon / MS
Azure

Sage Online

Sage Cloud
2014
3 Levels of Cloud Delivery
• SaaS: offers a contractual service to deploy, host,
manage and rent access to an application from a
centrally managed facility. They are responsible for …
managing a software application or a set of
applications
• PaaS: Platform as a Service provides applications,
frameworks and tools running on hardware managed
by a Vendor. MS Windows Azure platform is an
example. “Your stuff is hosted.”
3 Levels of Cloud Delivery
• IaaS: Infrastructure as a Service allows users
to manage their own applications, data and
operating systems leaving servers, storage and
networking to a vendor. Focuses on
management of the network and servers.
Which option is right for your business depends
on how much control you want over your
company’s software and computing resources.
Current ERP Deployments
Big Changes in Small Organizations

Small Org
< $50M Rev
SaaS ERP Deployments vs On-Prem
Industry
Financial Services

SaaS
33%

On-Premise
33%

Healthcare
Manufacturing
Non-Profit

13%
8%
6%

75%
78%
71%

Professional Services
Retail
Technology
Utilities
Logistics

12%
17%
11%
25%
19%

76%
50%
77%
58%
57%
Increasing Cloud Considerations
Cloud – Pros & Cons?
PROs

CONs

Easier to Implement and Support
Cheaper to Pay For
Less Flexible for Customization
Forced Upgrades when may not want
them

Deployment Model not even in Top 10 ERP
selection criteria – more prevalent in Best-in-Class
Organizations
Deployment Model not the
Deciding Factor
Positive Factors Influencing SaaS
Calculating TCO
Computer Hardware &
Programs

Operation Expenses

•
•
•
•
•
•
•
•

•
•
•
•

Network HW & SW
Server HW & SW
Workstation HW & SW
Installation
Integration
Purchasing research
Warranties and licenses
License Tracking Compliance
• Migration expenses
• Risks: susceptibility to
vulnerabilities, availability
of upgrades, patches and
future licensing policies

•
•
•
•
•
•
•
•

Long-Term Expenses

Infrastructure
• Replacement
Electricity – Equip, Cooling • Future upgrade or
Testing costs
scalability expenses
Downtime, outage and
• Decommissioning
failure expenses
Diminished performance
Security
Backup and Recovery
Technology training
Audit (internal & external)
Insurance
IT Resources
Corporate management
time
Validating Perceptions
Validating Perceptions

27%+ more
effort for IT
resources to
support OnPremise
Concerns Influencing SaaS Decisions
Cloud – More Secure & Stable
Aberdeen's report
"Web Security in
the Cloud: More
Secure! Compliant!
Less Expensive!"
The Tipping Point
The Tipping Point
• Smaller Organizations:
– Implementing ERP for the 1st time

• Larger Corporations:
– Multi-tiered ERP strategy
• Corporate standard – Administrative
• Support local business models –
Operational
Superior Performance with SaaS
Deriving Greater Operational
Improvements
Sage’s Cloud Offering
• Sage 300
Online
• Sage 300
Cloud –
Coming Soon
• Sage CRM
• Sage 50
Sage Connected Services
Key Takeaways
•
•
•
•
•
•
•

Can you support your current system?
Does the system have the functionality you need?
Are you distributed globally?
Do you believe that security is a concern?
How much time do you have?
How are you paying for this?
Will your employees be able to use it?
Don’t Leap Blindly into the Cloud

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BAASS Connect 2013 - Why Cloud Computing is Changing the way we do Business

  • 1. Why Cloud Computing is Changing the Way we do Business Presented By: Chuck Jerome
  • 3. Evaluating Change • Does it align with or support our strategy? • Important to evaluate technology to determine if it meets the needs of the business
  • 4. Cloud: Option or Impending Future
  • 5. What is Cloud Computing?
  • 6. We’re All Using the Cloud •Social Media Marketing •Facebook & Twitter •YouTube •LinkedIn •Banking/Finance/Investment •Online banking •E-Trade •Fidelity •Data Back-Up and Storage •DropBox •iCloud •Carbonite, CrashPlan •Productivity Tools •Google Apps •Microsoft Office 365
  • 7. The Game is Changing • 7 out of 10 companies that use cloud services will move more applications – Source: MimeCast • By year end 2016, more than 50% of Global 1000 Companies will have stored customer-sensitive data in the public cloud – Source: IDC • By year end 2016, one third of all digital content will be stored on the cloud - Source: Gartner
  • 8. 3 Levels of Cloud Delivery Function SaaS PaaS IaaS Service Software Platform Infrastructure Hardware Vendor Vendor Vendor Operating Systems Vendor Vendor Optional Databases Vendor Vendor Optional Application Vendor Customer Customer Management Vendor Vendor Customer Backups Vendor Vendor Customer Example Sage Amazon, MS Azure 3rd Party
  • 9. Understanding All Models On-Premise 3rd Party Hosted Hosted SaaS Hosting You 3rd Party Publisher Publisher Licences Perpetual Subscription Subscription Subscription Purchase CAPEX OPEX OPEX OPEX Solution Open Open Limited Strict Customization Unlimited Unlimited Limited None Examples Sage 300 local Amazon / MS Azure Sage Online Sage Cloud 2014
  • 10. 3 Levels of Cloud Delivery • SaaS: offers a contractual service to deploy, host, manage and rent access to an application from a centrally managed facility. They are responsible for … managing a software application or a set of applications • PaaS: Platform as a Service provides applications, frameworks and tools running on hardware managed by a Vendor. MS Windows Azure platform is an example. “Your stuff is hosted.”
  • 11. 3 Levels of Cloud Delivery • IaaS: Infrastructure as a Service allows users to manage their own applications, data and operating systems leaving servers, storage and networking to a vendor. Focuses on management of the network and servers. Which option is right for your business depends on how much control you want over your company’s software and computing resources.
  • 13. Big Changes in Small Organizations Small Org < $50M Rev
  • 14. SaaS ERP Deployments vs On-Prem Industry Financial Services SaaS 33% On-Premise 33% Healthcare Manufacturing Non-Profit 13% 8% 6% 75% 78% 71% Professional Services Retail Technology Utilities Logistics 12% 17% 11% 25% 19% 76% 50% 77% 58% 57%
  • 16. Cloud – Pros & Cons? PROs CONs Easier to Implement and Support Cheaper to Pay For Less Flexible for Customization Forced Upgrades when may not want them Deployment Model not even in Top 10 ERP selection criteria – more prevalent in Best-in-Class Organizations
  • 17. Deployment Model not the Deciding Factor
  • 19. Calculating TCO Computer Hardware & Programs Operation Expenses • • • • • • • • • • • • Network HW & SW Server HW & SW Workstation HW & SW Installation Integration Purchasing research Warranties and licenses License Tracking Compliance • Migration expenses • Risks: susceptibility to vulnerabilities, availability of upgrades, patches and future licensing policies • • • • • • • • Long-Term Expenses Infrastructure • Replacement Electricity – Equip, Cooling • Future upgrade or Testing costs scalability expenses Downtime, outage and • Decommissioning failure expenses Diminished performance Security Backup and Recovery Technology training Audit (internal & external) Insurance IT Resources Corporate management time
  • 21. Validating Perceptions 27%+ more effort for IT resources to support OnPremise
  • 23. Cloud – More Secure & Stable Aberdeen's report "Web Security in the Cloud: More Secure! Compliant! Less Expensive!"
  • 25. The Tipping Point • Smaller Organizations: – Implementing ERP for the 1st time • Larger Corporations: – Multi-tiered ERP strategy • Corporate standard – Administrative • Support local business models – Operational
  • 28. Sage’s Cloud Offering • Sage 300 Online • Sage 300 Cloud – Coming Soon • Sage CRM • Sage 50 Sage Connected Services
  • 29. Key Takeaways • • • • • • • Can you support your current system? Does the system have the functionality you need? Are you distributed globally? Do you believe that security is a concern? How much time do you have? How are you paying for this? Will your employees be able to use it?
  • 30. Don’t Leap Blindly into the Cloud