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Are You Ready for

Replatforming?Webinar 5: Cloud vs. On-Premise

Agenda

Recap: What is Replatforming?Definitions – cloud vs. on-premisePros and Cons of eachWhere do they fit?Next Steps and resources for today

Introductions

Alicia AndersonStrategic MarketingAtlanta, GA-based19 years in ERP/CRM sales, service and marketing

Moving to automation for the first time.Transitioning to a new system.Upgrading an existing system.

What is replatforming?

This series is designed to give you the tools and knowledge

needed to make ERP/CRM transition smooth and minimize

risk.

Industry analyst Mint Jutras reports that 73% of surveyed companies said that “management

driven change was requiring moderate to

substantial ERP change”

Series Introduction – May 7

How to Build a Business Case – June 4

How to Scope Your Project – July 9

How to Evaluate Solutions and Build Your Evaluation Committee – Wednesday – August 6

Cloud vs. On-Premise - TODAY

Know Your Payment Options - Wednesday, September 24

The Series

Cloud vs. On-Premise

5

CloudTechnology as a ServiceIaaS, PaaS, SaaSProviders install and operate application software in data centersExample: Gmail/Google Docs, Facebook, NetSuite, Salesforce.comSold as a subscription

On-PremiseTraditional deploymentUsers install and manage application software on their own equipmentExample: Sage 100, Microsoft Office, SaleslogixSold as a one-time license

Let’s start with some definitions

What is the rate of ERP cloud adoption?

Gartner estimates 35% of all CRM software is now consumed using SaaSThat figure is expected to grow to just over 50% by 2020.

What is the rate of CRM cloud adoption?

Rent if…Your lifestyle is flexible and adaptable.You don’t want to invest in resources that you don’t need (i.e., lawnmower).You don’t need to customize your home to feel comfortable.

Buy if…You need more stability.You have the resources to make long-term investments.You want to make it your own and highly customize your space.

Rent vs. Buy Model

Pros ConsLack of control of upgrade scheduleData ownershipLong term TCODowntime potential*Less mature feature set

Perceived Pros and Cons of the Cloud

Speed to deployOp-ex vs. Cap-exAlways onScalableReduced demand on in-house IT staff

Pros ConsRequires IT resources to manage.Solutions can become version-locked.Heavy initial costs.

Perceived Pros and Cons of on-premise

Control over sensitive business data.*Control over upgrade schedule.Ability to depreciate costs.Option to stop paying maintenance and support at end-of-life.

The Reality of Deployment Costs

Where do they fit?

Cloud On-Premise

Customer Growth Status

In acquisition or expansion mode; focused on business agility

Stable, predictable business model; centralized, legacy equipment in place

Top Verticals

• Distribution/wholesale• Computer software publishers• Professional services• Retail/eCommerce

• Distribution/wholesale• Manufacturing• Food and Beverage• Technology

Customers include

Eloqua (marketing automation solution), Magellan (GPS manufacturer)Groupon, VMware.

Hansen’s Natural (beverage manufacturer/distributor), Best Bath Systems (bathing systems manufacturer).

Business and Workplace

Culture

Users are social/mobile and use cloud applications (Gmail, Dropbox, etc.); collaborative environment; focus on data as value driver; fast decision cycles.

Hierarchical and centralized environment; heavy compliance and regulatory requirements; highly sensitive data.

Rent if…Your business is changing or growing.IT resources needed to focus on other business priorities.Your processes are flexible and agility is a priority.

Buy if…You have a stable business model.You already have invested in in-house IT resources.You need a high level of integration and/or customization.

Rent vs. Buy Model

The Test Case

Acme Distribution Company

Mid-sized wholesalerExpanding into global marketsUsing legacy systems and siloed spreadsheetsGrowing organically

Let’s walk through the cloud vs. on-premise question for a sample company to help illustrate where each option fits.

Ability to be flexible and agileAbility to re-deploy IT resources to be strategic vs. help-deskSpeed of deployment

From the Executive perspective…

Bob Robinson, COOCloud Preference

Control of sensitive dataControl of payments and ability to discontinue paying in the future while retaining use of the systemDepreciation

From the Finance perspective…

Joe Jones, Controller

On-premise preference

Ability to utilize up to date technologyAbility to be strategic vs. help-deskSpeed of deployment

From the IT perspective…

Cloud Preference

Bill Williams, IT Manager

Concerns about downtimeAlmost unlimited ability to customize and integratePotential regulatory concerns

From the Operations perspective…

On-premise preference

Jane Smith, Operations Manager

So which solution do they choose?

One size does not fit allMap the TCO over the life of the systemUnderstand the priorities for your businessQuestion the assumptions about each option

In summary…

Does your business currently use any cloud technology?

File Storage or Sharing (DropBox, Google Drive)Database (Xeround)CRM (Salesforce, SugarCRM)Email (Gmail)eCommerce (eBay, Amazon)Other

A Quick Audience Poll…

Resources for today’s class

Available on http://info.blytheco.com/replatform-resources

ERP Comparison GuideCopy of this presentationResources from previous classes

Next Class…

Know your payment options – September 24