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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