1. Cloud
Cloud Computing, Software-as-a-Service, and
Sales Forecasting

2. Douglas Lucy
Cloud Computing, Software-as-a-Service,
and Sales Forecasting
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3. Cloud Computing is Mainstream for Business
©2012 Adaptive Planning, Inc. All rights reserved.

4. Essential Cloud Attributes
On-demand services
Delivered from remote locations by third party
Service delivery via the internet
Multi-tenant – multiple, diverse customers share
computing resources, allowing economies of scale
Partitioned tenants don’t impact each other
Security tightly integrated into service
Scalable and elastic
Increase or decrease number of users that have access to
services
Automatic and frequent enhancements
Automatic backups integrated into services
©2012 Adaptive Planning, Inc. All rights reserved.

5. Cloud Market Drivers
Cost Savings
Time Savings The Cloud
Scalability
©2012 Adaptive Planning, Inc. All rights reserved.

6. Why the Cloud?
Speed of implementation and deployment 35% 33%
Lower overall costs 26% 35%
Allows us to focus resources on more important projects 31% 28%
Improved business agility 28% 30%
We chose the best application for our needs and were neutral on
24% 26%
whether it was SaaS or not
To support a large number of mobile and remote users 23% 22%
Gaining a feature or functionality that is not available in a
26% 18%
traditional, licensed software package
Ability to substitute upfront costs with regular monthly payments 24% 18%
Lack of in-house IT staff to maintain a traditional software
22% 19%
solution
It was the only deployment option available from software
11% 10%
providers
4 - Important 5 - Very important
We have a general IT strategy of preferring SaaS over on-premise
15% 6%
deployments
Sample: 534 software decision-makers Source: Forrsights Software Survey, Q4 2010
©2012 Adaptive Planning, Inc. All rights reserved.

7. 77% Lower Total Cost of Ownership for
Cloud-Based vs. On-Premise CPM Solutions
4-Year Total Cost of Ownership for Cloud-Based vs. On-
Premise CPM Applications (10 Full Users & 15 Review Users)
$350,000
$300,000
$250,000
$200,000
$150,000
$100,000
$50,000
$-
SaaS On-Premise
IT Infrastructure Application Software Implement & Support Training
Source: Hurwitz & Associates, 2010.
SaaS solution analyzed: Adaptive Planning. On-premise solutions analyzed: Clarity Systems, Longview, and Prophix.
©2012 Adaptive Planning, Inc. All rights reserved.

8. Cloud Lowers Total Cost of Ownership
On-Premise Software Cloud Computing
Software Licenses 9% 68% Subscription Fee
T
C
Customization O
Customization & 43% Implementation
T Implementation 32%
C & Training
O Hardware 26% Source: Yankee Group DecisionNote
Technology Analysis
IT Personnel 14%
Maintenance 7% 77% less than
1%
Training
On-Premise
“Customers can spend up to four times the cost of their “Cloud computing yields substantial economies of scale and
software license per year to own and manage their skill, and lowers total cost of ownership (TCO).”
applications.”
– Gartner – The Hurwitz Group
“The End of Software” “The Compelling TCO Case for Cloud Computing”
©2012 Adaptive Planning, Inc. All rights reserved.

9. Business Cloud Usage
Majority of business save money with the cloud
82 % Percentage of savings
Businesses are into the cloud for the long term
65
of companies choose cloud
% subscriptions lasting one
year or more
U.S. federal agencies are required to adopt a “cloud first” policy
48 % of U.S. government IT workers
have moved to the cloud
Source: CSC Cloud Usage Index
©2012 Adaptive Planning, Inc. All rights reserved.

10. U.S. Federal Government Cloud First Policy
Agencies must default to cloud-based solutions whenever
a secure, reliable, cost-effective cloud option exists
Each agency CIO must identify three “must move”
services, and plan to migrate them to cloud solutions
Why?
Build capabilities and momentum
in the Federal Government
Cloud
Encourage industry to develop First
cloud solutions for government
Reduce operating costs
©2012 Adaptive Planning, Inc. All rights reserved.

11. Data Center & IT Resources
On-Premise Software Cloud Computing
Complex, overgrown computing Storage and server needs in hands
platforms of outsourcer
Depreciates quickly Shifts burden from in-house IT to
Consumes large amounts of space, 3rd-party provider
power, and cooling resources Frees up internal resources
IT resources silo around particular Reliable service
applications Huge datacenters with endless
Difficult to adapt to changing storage and computing capacity
business demands Add or subtract capacity as
business needs change
Pay only for what you use
Cloud computing is a commercially viable alternative for companies in
search of a cost-effective storage and server solution.
©2012 Adaptive Planning, Inc. All rights reserved.

12. Security
On-Premise Software Cloud Computing
Personal computers easily Superior security technology and
corrupted expertise than a company trying to
In-house data centers not immune protect its own data
to hackers Cost of security spread over a
Security cost burden number of customers
In-house IT staff not necessarily SSAE 16 Audit and SOC 1 Type II
most skilled at securing your data Report
Infrequent audit of all processes and Availability 99.9%
policies Continuous performance audits
Backup/restore/disaster recovery
Well-managed cloud computing can be more reliable, secure, and private.
©2012 Adaptive Planning, Inc. All rights reserved.

13. Cloud Service Categories
SaaS: Software as a Service
 Enables on-demand use of software over
the Internet
PaaS: Platform as a Service
 Programming platform and tools as a
service over the Internet
IaaS: Infrastructure as a Service
 Computing resources (processing
power, storage, etc.) as services over the
Internet
BPaaS: Business Process as a Service
 Business process offerings that integrate
process, technology, and people, e.g., call
centers, human resources
©2012 Adaptive Planning, Inc. All rights reserved.

14. SaaS is Well Established and
Will Continue to Dominate the Cloud
SaaS Forecast Why SaaS Dominates
Forecast: Total Public Cloud Markets
Ready to run with next-to-no set-up
$180 expenditure
$160 Most SaaS applications are vitally
$140 important but peripheral to core
$120 enterprise operations
$100 Low-risk on-ramp to wider cloud
$80 adoption
$60 SaaS applications deliver value
$40 because their applications
$20 encompass complete functionality,
$0 which vendors continue to evolve
2008 2010 2012 2014 2016 2018 2020 and enhance
IaaS ($) PaaS ($) BPaaS ($) SaaS ($)
Business applications delivered far
more cost-effectively than other
implementations
Sizing the Cloud April, 2011
©2012 Adaptive Planning, Inc. All rights reserved.

15. SaaS Delivers Significant Advantages
On-Premise Model
©2012 Adaptive Planning, Inc. All rights reserved.

16. SaaS Levels the Playing Field
World class performance SMB Enterprise
scalability for any
Pay only for what you use
SOHO
size business NONPROFIT SMB ENTERPRISE
Same features
Same performance
Same scalability
Same reliability
Same global solution
©2012 Adaptive Planning, Inc. All rights reserved.

17. Sales Forecasting
CRM solutions are excellent sales operations tools
Detailed insight into opportunities over next few months/quarters
But significant limitations exist when used for sales
forecasting & analysis
Poor visibility into sales further in the future
Insufficient ways to incorporate management judgments
Limited snapshots of data at different points in time, for pipeline change
analysis
Inability to integrate external data
©2012 Adaptive Planning, Inc. All rights reserved.

18. Sales Forecasting & Analysis Solution
Optimizes your investment in CRM and other sales
tracking systems by enhancing their capabilities:
Top-down forecasting
Management adjustments
Snapshots of data
Driver-based planning
What-if analyses
Integrate External Data (Run Rate, Quota, compensation planning, etc.)
Optional automatic integration of sales and financial plans
Dramatically improve sales forecasting, enhance
productivity, and improve alignment and collaboration
among the sales management team
©2012 Adaptive Planning, Inc. All rights reserved.

19. Sales Forecasting & Analysis Solution:
Integration
Optional
Sales Forecasting Instances
Sales Instances Financial Planning
Corporate Instance
On-Premise Applications Detailed Forecast by Opportunity Corporate Financial Model
+ • Income Statement
Management Adjustments • Personnel
+ Many More + • Expenses
Additional Data • Capital
(Run Rate, Quota, etc.) • Revenue
+ • Balance Sheet
CRM & Other Sales Applications Pipeline Snapshot History • Cash Flow
Detailed Forecast by Opportunity
©2012 Adaptive Planning, Inc. All rights reserved.

20. Sales Forecasting & Analysis Solution:
Improved Visibility into Sales Further Out
Automatic import of key CRM or other source data (leads,
opportunities, wins), plus other data (run-rate business,
backlog, compensation detail)
Multiple ways to forecast past time horizon of CRM data
Drive current data into future time periods, then adjust with
multiple tools
Or use driver-based and assumption-driven planning to model
future time periods
Drivers can incorporate financial and non-financial data, such as call
volume, man hours, billing rates, units, pricing, etc.
Leverage CRM data and easy-to-use but sophisticated
modeling tools to forecast past CRM time horizon
©2012 Adaptive Planning, Inc. All rights reserved.

21. Sales Forecasting & Analysis Solution:
Easily Integrated Management Adjustments
Manipulate data in Adaptive Planning, regardless of the
source
Or supplement it with additional data, at the detailed or
higher level
E.g., adjust total sales by region, or for specific product lines
Multiple modeling tools make either method easy, e.g.,
Automatic copy forward, adjust up or down by values or
percentages over time
Assumptions and lookup tables facilitate calculations and what-if
scenario analysis
Top-down meets bottom-up forecasting,
while maintaining pipeline detail
©2012 Adaptive Planning, Inc. All rights reserved.

22. Sales Forecasting & Analysis Solution:
Snapshots of Pipeline Data for Analysis
Create snapshots of CRM data at any chosen interval (e.g., monthly,
weekly, daily)
Use reports, dashboards, KPIs, scorecards with real-time pipeline
snapshot data for trend and change analysis
Also perform other analysis, e.g., benchmarking sales’ reps conversion
rates
Use drag-and-drop report builder for easy slicing and dicing of
pipeline data across unlimited dimensions
E.g., product, customer, channel, region, sales rep
Drill down to identify root cause of variances
Improve analysis of sales performance and
understand key changes in forecast over time
©2012 Adaptive Planning, Inc. All rights reserved.

23. Sales Forecasting & Analysis Solution:
Integrated Quota & Compensation Planning
Build quota and compensation plans in same system as
sales forecast
Integrated planning facilitates what-if scenario analysis
Take advantage of tools to calculate compensation by
sales rep, territory, region, etc.
Revenue targets can be set by product line, key customers, etc.
Allocate targets down to individual rep level, with uplifts where
appropriate
Integration of sales and compensation planning decreases planning
time, improves productivity, and makes what-if analysis fast and easy.
©2012 Adaptive Planning, Inc. All rights reserved.

24. Sales Forecasting & Analysis Solution:
Additional Features & Capabilities
Unlimited custom dimensions, e.g., product, customer, channel,
region, rep
View data on multi-dimensional cube sheets, whose axes can be changed
by dragging and dropping
Multiple currencies and automatic currency conversion
Automated consolidation, across worldwide entities and currencies
Intuitive and easy to use, even for non-finance people
Can be owned and managed by Sales, with no IT or Finance support
required
Improves collaboration among sales managers
Decrease forecasting times by up to 90%, free up more time
for value-added analysis, and improve overall sales execution
©2012 Adaptive Planning, Inc. All rights reserved.

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