Why Cloud Computing is Changing the Way we do Business

Presented By: Chuck Jerome

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?

•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

We’re All Using the Cloud

• 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

The Game is Changing

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

3 Levels of Cloud Delivery

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

Understanding All Models

• 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.

3 Levels of Cloud Delivery

Current ERP Deployments

Big Changes in Small Organizations

Small Org< $50M Rev

Industry SaaS On-PremiseFinancial Services 33% 33%Healthcare 13% 75%Manufacturing 8% 78%Non-Profit 6% 71%Professional Services 12% 76%Retail 17% 50%Technology 11% 77%Utilities 25% 58%Logistics 19% 57%

SaaS ERP Deployments vs On-Prem

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 TCOComputer Hardware & Programs

Operation Expenses Long-Term 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

• Infrastructure• Electricity – Equip, Cooling• Testing costs• Downtime, outage and

failure expenses• Diminished performance• Security• Backup and Recovery• Technology training• Audit (internal & external)• Insurance• IT Resources• Corporate management

time

• Replacement• Future upgrade or

scalability expenses• Decommissioning

Validating Perceptions

Validating Perceptions

27%+ more effort for IT resources to support On-Premise

Concerns Influencing SaaS Decisions

Cloud – More Secure & Stable

Aberdeen's report "Web Security in the Cloud: More Secure! Compliant! Less Expensive!"

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

The Tipping Point

Superior Performance with SaaS

Deriving Greater Operational Improvements

• Sage 300 Online

• Sage 300 Cloud – Coming Soon

• Sage CRM• Sage 50

Sage’s Cloud Offering

Sage Connected Services

• 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?

Key Takeaways

Don’t Leap Blindly into the Cloud