Cincom In-depth Analysis and Review with Insights from Louis Columbus and Greg Doud

Cloud vs. On-PremiseMaking the Best Decision forYour Complex Selling System

WHITE PAPER

SIMPLIF ICATION THROUGH INNOVATION®

Table of Contents

Selling with Accuracy, Intelligence and Speed . . . . . . . . 1

Think of Selling Speed and Accuracy as Part of Who You Are . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Ten Signs that It’s Time to Upgrade Your Quoting Process and Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Configuring Products on the Fly—Speed Is the New Differentiator . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Cloud vs. On-Premise: Which Is Best for You? . . . . . . . . 2

Pros: When Cloud Computing Makes Sense . . . . . . . . . . 3

Cons: When On-Premise Works . . . . . . . . . . . . . . . . . . . . 3

Fifteen Questions to Help You Decide If the Cloud Is for You . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Infographic: Is the Cloud for You? . . . . . . . . . . . . . . . . . . 5

Cincom In-depth Analysis and Review withInsights from Louis Columbus and Greg Doud

Cloud vs. On-Premise

WHITE PAPER

Making the Best Decision forYour Complex Selling System

1

Selling with Accuracy, Intelligenceand SpeedNow is the new normal for your prospects and customers.

Being able to capture new business, exceed the expectations of customers and set a solid foundation forfuture growth relies on how well your company respondsto every opportunity to sell. Making the most of everyopportunity begins by getting into the mindset of yourprospects and customers.

One of the most powerful ways to do that is to create veryaccurate, clear quotes, proposals and pricing estimates—ones that reflect the best of who your company is andwhat they can do to serve prospects and customers. Greatquoting, proposal and pricing systems can tell you whichdeals are the most profitable, and those you need to walkaway from.

Think of Selling Speed and Accuracy as Part of Who You AreMaking the most of every minute with a prospective or current customer starts with a commitment to reallylisten to what they have to say and capturing theirrequirements accurately.

The best-in-class, tablet-based quoting systems have theability to pull real-time pricing and product availabilityover the Internet and configure exactly what a customerwants in real time.

Looking at the factors behind these state-of-the-art sellingsystems shows a fascinating story of how companies arebreaking through the barriers of selling more. Here are the lessons learned from companies that are excelling ataccurate, intellegent and rapid selling:

• Define quoting, proposal and pricing success fromyour customer’s metrics first—not your own. In manyindustries, since time is so incredibly precious and insuch short supply, buyers want to get the most accuratequote as possible and move on to the next task.

• Realize that your buyers choose to learn differentlytoday than in the past. The current generation ofbuyers in B2B has chosen entirely new channels of howthey learn about new products and solutions.Companies that realize this and choose to createquoting, proposal and pricing systems that give thislatest generation of buyers a chance to learn in the waythey prefer are winning more business as a result.

• Your customers’ greatest asset is time—respect itand earn the chance to serve and sell them more.Not only is the definition of time changing for yourprospects and customers, the pace of change itself is accelerating. The following infographic from Intelshows what happens in a typical Internet minute. The Internet and its convenience and speed arecompressing prospects’ and customers’ expectationsrapidly. Quoting, proposal and pricing systems need to keep pace with this change in how customers valuetime to stay relevant today and in the future.

Bottom line: Who your company is on the inside and how much you value prospects’ and customers’ time getsprojected to the outside world every time you complete a quote, proposal or pricing request.

“What Happens in an Internet Minute?” Intel.com, n.p.,n.d. Web.12 Oct. 2012

2

Ten Signs that It’s Time to Upgrade YourQuoting and Proposal StrategiesEvery quote or proposal that your company creates says more about who you are than a year’s worth of marketing collateral.

Quoting and proposals say how serious your company is about the commitments it makes and keeps. How youhandle them—either with accuracy, speed and precisionor with errors, omissions and requests from prospects formore meetings or information—also says much abouthow your company operates. Here are the top ten signsthat it’s time to upgrade.

1. Quotes are reworked multiple times, leading to lost time in the sales cycle and sales representativeshaving to chase down experts to get accurate answers.

2. Every selling or distribution channel has its own quoting and proposal system, which leads to a duplication of selling efforts.

3. New product introductions, product-line extensions and discontinued products aren’t reflected in the current pricing, product catalogs and proposal workflows for months.

4. Measuring sales productivity across all channels is done manually and is often inaccurate. There are no analytics or financials that can be viewed in real time to see sales productivity.

5. The proliferation of product features, options and service contracts is making the existing quote-to-order process extend to weeks, when hours is the turnaround time that customers want.

6. Pricing and Gross Contribution Margins are calculated manually on every proposal and quote, which bogs down the sales manager’s and finance department’s time.

7. Orders have been accepted that aren’t buildable, or they’re so expensive to produce that the company is losing money.

8. Prospects want a complete quote or proposal basedon just a single meeting with your sales team. Currently,it’s taking three to four meetings to capture their requirements.

9. Cross-selling and up-selling is done rarely, if at all, due to the lack of flexibility in the quoting, proposal and catalog management systems.

10.Every quote has to go through engineering teams to see if it’s buildable, which means that you’re constantly chasing the experts.

Configuring Products on the Fly—Speed Is the New DifferentiatorThe best selling systems liberate sales so that more time canbe spent with customers. Particularly with manufacturingand service companies in heating, ventilation, airconditioning and refrigeration (HVAC/R); specialty vehicles;medical products and high-tech industries, this is the bestway to learn their business challenges and objectives.

Accuracy and speed are important to customers who arelooking to purchase your products. Therefore, they shouldbe important considerations when contemplating a plat-form for your selling system. According to Gartner Analyst,Tom Bittman1, recent polls show that even more than lowercosts, the majority of large enterprises consider speed andagility to be the primary benefits of cloud computing.

The cloud can allow fast access to systems and productinformation and can enable accurate quotes to be quicklyconfigured at the point of sale. However, computing in the cloud also comes with its own set of risks. How canyou be sure which is better for your company—the cloudor on-premise?

Cloud vs. On-Premise: Which Is Best for You?According to Forbes2, the biggest mistake companiesmake when purchasing a cloud solution is by not going in with a well-developed strategy.

Industry Analyst, Louis Columbus, concurs:

“The best results are being attained by enterprises thatfocus on a very specific strategy and look to cloud-basedtechnologies to accelerate their performance. Thoseenterprises that look to cloud platforms only for costreduction miss out on their full potential.”

So, how can you avoid making the “strategy” mistake? To start, take a look at some of the “pros” and “cons”about cloud computing.

1Bittman, Thomas J., “Top Five Private Cloud Computing Trends, 2012.”Gartner.com, Web. 12 Oct. 2012

2 “Hype Cycle for Cloud Computing Shows Enterprises Finding Value in Big Data,Virtualization.” Forbes.com, 04 Aug. 2012. Web. 12 Oct. 2012

3

Pros: When Cloud Computing Makes SenseAccording to Greg Doud of Cincom, the following are themost compelling reasons why cloud computing may makesense for your enterprise.

• Reduced cost - When you have your application runningin the cloud, your IT staff doesn't have to worry aboutservers, networking and operating system softwaresupport. Those things are being taken care of by thecloud provider.

• Mobile computing - Most companies have complicatedsecurity protocols to keep people from getting into theirnetwork; but that is just what the mobile users need todo! Access authorizations are taken care of effortlessly in the cloud.

• Cash flow - When deploying a large system on-premisethat requires multiple servers and software, a large, up-front cash outlay is also required. When using acloud, normal charges are billed on a monthly basis as an operating expense rather than a capital expense. This improves a company’s cash flow.

• More robust environment - Cloud providers build their infrastructure to support high-speed, load-balanced environments. This means that running in the cloud allows a company to quickly scale up theirapplication without a large additional investment, orscale down and only pay for what’s needed.

• Increased response times/decreased outage risks -Most large cloud providers have multiple data centers in various parts of the world. This allows a companyto deploy their applications and data closer to the end-user than when servers and software are in thecompany's data center. This means better responsetimes and decreased outage risks.

• Faster start-up and time-to market with a SaaS-basedenterprise application - With a cloud offering, you canget started much faster than with one that requires youto obtain your own hardware and software.

• Nothing to install - Enough said.

• Freedom for the line-of-business manager - Cloud-based applications are paid for from operating-expense(OPEX) budgets, which frees up the line-of-businessmanager to pay for just what they need. They also are free from the lengthy and often complex capitalexpense (CAPEX) budgeting processes that ITdepartments have historically relied upon.

• Greater flexibility in defining workflows - Cloudapplications are more adept at being configured from a workflow standpoint since they are designed for rapid updates and customization.

• SaaS-based integration is accelerating - Manyenterprises are now integrating their quoting, proposaland pricing systems directly into their CRM systems,including Microsoft CRM and Salesforce CRM. This is rapidly driving up adoption rates since salesprofessionals are using these applications while within a CRM working session—all in real time.

Cons: When On-Premise WorksHowever, according to Doud, in some instances, on-premise deployment may be right for your company.When might that be?

When you’re concerned about:

• Total cost of ownership (TCO) - Paying a low monthlysubscription for software certainly helps a company'scash flow. However, over the long term, the softwaredoes become more expensive. For example, suppose a company is looking to purchase some software for$3,600, or they can pay $100 per month. After threeyears, the amount paid for the subscription is identicalto the purchase price. But after those three years, thesubscription will begin to cost more than the purchase.

• Outside risks - When software is hosted on-premise,everything resides within the walls of the company. Whenit is hosted in the cloud, the cloud provider has accessto and control of the hardware and software. If the cloudprovider’s security controls are not as robust as those ofthe company, the risk of failure can be greater.

• Data control - The US Patriot Act requires somecompanies to keep their data within the boundaries ofthe United States. This limits some of the flexibility thatcloud providers allow in terms of deploying applicationsclose to the user. Additionally, having an on-premisesolution may make sense when you need to keepsensitive or regulated data local.

When Is the Cloud the Right Choice?

Outgrowingexisting

applicationrequirements

Little or no in-house IT

Need for mobile

Immediateneed/fast

implementation

High growth/rapid change Seasonal needs

Limited budgetGeographicexpansion

Businesscontinuity/emergency

preparedness

4

ConclusionComputing in the cloud can provide unmatched dynamicscalability and flexibility as well as reduced start-up anddeployment costs, since software is typically expensedrather than capitalized. There is also greater support forremote and mobile users in the cloud. For these reasons,cloud deployment is quickly gaining momentum.

However, in the end, it comes down to whether peoplebelieve that cloud computing is safe and that the risks areworthwhile. We hope this white paper has helped youmove closer to deciding what’s best for your organization.

15 Questions to Help You Decide if theCloud Is for YouFinally, these questions should help you develop astrategy to best decide what’s right for your organization.

Security1. Where are the hosting facilities and backup data

centers located?

2. Who owns my data once it’s transferred to the hosting facilities?

3. Will my data be used for data-mining purposes?

4. What’s your disaster recovery plan? Your up-time percentage?

5. Do your facilities have industry-recognized security features (such as data encryption)?

IT6. How long will implementation take and what does

it entail?

7. Do we need any hardware or software installed on-site and what do we need to look at regarding our ISP?

8. Will the add-ons and other services I’m currently using be available in the cloud?

9. How is data returned to us if we decide to move back on-premise?

Vendor10. What is your company’s history and experience

in this area?

11. Can you provide references?

12. In your experience, what do you see as the benefitsand risks of moving to the cloud that are specific tomy particular business?

Cost 13. Can I shut down portals as needed and only pay

for what I use?

14. What can I expect to save with a cloud model vs. an on-premise solution?

The Bottom Line15. Why should I select you as my cloud computing

provider?

5

IT

Vendor

Cost

Bottom Line

The Question Countdown

Is the Cloud for You?

Highter Total Cost of Ownership Some Outside Risk Less Data Control

Reduces Cost and Outage RiskCons

Pros

By 2014, the personal cloud will have replaced the personal computer as the center of users’ digital lives.

75% of respondents in Gartner polls say they plan to pursue a private cloud computing

strategy by 2014.

More than 50% of enterprises will have some form of SaaS-based application

strategy by 2015.

ACCORDING TO GARTNER*From the Gartner “Hype Cyle for Cloud Computing,” 2012

Private CloudDelivered internally to one organization

Public CloudDelivered to anyone who

wants to consume the services

security

6

Louis Columbus has nearly 20 years of experience in the IT industry, specializing inmarket and industry analysis,sales, product managementand development.

He’s held senior positions at Toshiba America, IngramMicro, several software start-ups and immediately before joining Cincom, as Senior Analyst at AMRResearch. Mr. Columbus is a frequent contributor toindustry publications and has published 15 books onoperating systems, peripherals and industry analysis.

In addition, Mr. Columbus is a frequent lecturer inWebster Loyola-Marymount University’s graduateprogram on International Business and GlobalCompetitive Strategy. He earned his MBA fromPepperdine University.

Greg Doud is theSeniorProduct Manager and Architect of Cincom Acquire®at Cincom.

Mr. Doud held positions of Director of Engineering and Software Development at Honeywell and Gannettbefore moving to Cincom where he's been workingsince 1991. He regularly tweets and blogs abouttechnology and has been featured on Microsoft’sChannel 9 for his work with Windows Azure.

Mr. Doud’s philosophy is to stay up-to-date on new tech-nology and use it as a tool to solve the difficult customerproblems of today. He holds a BS in InformationProcessing Systems from the University of Cincinnati.

Cincom, the Quadrant Logo, Cincom Aquire and Simplification ThroughInnovation are registered trademarks of Cincom Systems, Inc. All other trademarks belong to their respective companies.

© 2012 Cincom Systems, Inc.FORM AQUS1301004 11/12Printed in U.S.A.All Rights Reserved

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