Presentation TitleFirst Name Last Name

RMOUG Training DaysFebruary 11-13, 2013

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About DBAKOracle Database, Technology and E-Business Suite applicationsCo-founded in 2005Colorado owned and operatedAverage 15 Years of Oracle Expertise Awards• “Top 250 Private Companies, 2011 and 2012” ” – CoBIZ Magazine • “Fastest-Growing Private Companies” – 2012 Finalist, Denver Business Journal• “Colorado Companies to Watch” – 2012 Finalist, Colorado Office of Economic

Development and International Trade• “Emerging Business of the Year, 2008” – South Metro Denver Chamber of Commerce

100+ Clients200+ Implementations, Upgrades, Conversions, Support ProjectsOracle Gold Partner• Oracle Accelerate Solution – Hosted Financials• “Specialized”

- Oracle Database- Oracle Enterprise Manager

About Bryan

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A senior level enterprise architect with DBAK with over twenty years of experience in IT leadership, software development, systems management, and systems engineering. He has recently been leading Tri-State Generation and Transmission in the development of their Enterprise Data Dictionary. Bryan has extensive experience with database-driven applications development and support. Bryan recently functioned as a strategic leader for Dex Media, driving forward technical change to help catapult the company into the digital age.

Agenda

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Cloud 101Reasons to ConsiderQuestions to AskCustomer Experience

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“Cloud computing is still very much at the peak of the Gartner Hype Cycle (and very much on the mind of CFOs).” –Choosing a Cloud Application: A Hornet’s Nest of Complexity, CFO.com, March 2012

According to a survey conducted by CFO Magazine, nearly a third of all CFOs admitted that they didn’t know much about cloud computing, and weren’t even sure what the term meant. Yet, when asked how cloud computing might affect their company’s approach to IT, almost half believed that it would enable a significant restructuring of their entire IT strategy.

“CFOs have high hopes for cloud computing, even though they don’t appear to know much about it.”

–Cloud Computing: Sounds Great! (But What Is It?), CFO Magazine, March 2011

Cloud Layers

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Platform

End User

Infrastructure

Applications

Cloud Computing 101

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According to the National Institute of Standards (NIST), Cloud computing is a model for enabling convenient, on-demand network access to a shared pool of configurable computing resources that can be rapidly provisioned and released with minimal management effort or service provider interaction.

Essential Characteristics

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On-demand self-service• Provision computing capabilities without human interaction

Resource Pooling• Multi-tenant model, resources assigned dynamically• Location independence

Rapid elasticity• Scale rapidly ‘outward and inward’ commensurate with

demand• Can appear unlimited

Measured service• Usage can be monitored, controlled and reported • Transparent to both provider and consumer

Broad network access• Available over the network – thick or thin clients

Deployment Modes

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Software as a Service (SaaS)• Applications are delivered as a service to end users,

typically over a web browser. There are hundreds of SaaS service offerings available today, ranging from horizontal enterprise applications to specialized applications for specific industries, and also consumer applications such as Web-based email.

• Multi-tenant as well as single-tenant options that can be deployed over public, private, or hybrid clouds, depending on an organization’s needs

Deployment Modes

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Platform as a Service (PaaS)• Application development and deployment platform

delivered as a service to developers who use the platform to build, deploy and manage SaaS applications. The platform typically includes databases, middleware and development tools, all delivered as a service via the Internet.

Infrastructure as a Service (IaaS)• Servers, storage, and networking hardware delivered

as a service. In this mode, infrastructure hardware is often virtualized, so virtualization, management and operating system software are also part of IaaS

Service Models

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Private CloudsFor exclusive use by a single organization and typically controlled, managed and hosted in private data centers. The hosting and operation of private clouds may also be outsourced to a third party service provider. This type of service model is well-suited to larger organizations that need to standardize their processes and infrastructure, and desire the security, reliability, and greater control delivered with a private cloud.

Public CloudsFor use by multiple organizations (tenants) on a shared basis and hosted and managed by a third party service provider. Public clouds work well for companies seeking to avoid upfront capital costs and willing to forego customization of the processes being outsourced.

Putting It All TogetherLogical diagram

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Gartner Hype Cycle

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Myths About Cloud Computing

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Cost• Cost Is the Biggest Driver of Cloud Adoption• Cloud services are expensive.

Security• Security and Privacy Are Not Adequate in the Cloud • You lose complete control of your enterprise data in the cloud

Enterprise Management• I Can Get All the Benefits of the Cloud by Creating My Own In-house Cloud

or Private Cloud• We don't have time for the Cloud. We're already stretched!

Deployment/Reliability• The Cloud Is Not Reliable • Cloud computing reduces productivity.• Speed and overall performance is an issue in the cloud

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Greater Agility Cost Effective More Innovation

Faster Deployment and Responsiveness to Changing 

Business Requirements

Focus on Core Competencies, Differentiation and Innovation

Lower Costs, Greater Efficiency and Utilization

Cloud Computing Changes the Way IT Impacts BusinessDelivering Agility and Faster Innovation with Lower Cost

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Innovation and AgilityGrowing Factors For Cloud Adoption

Top Expected (Non-Cost Driver) Benefits from Cloud Business Solutions*

*Source: “Advancing Business Innovation in the Cloud”, Saugatuck Technology. June 2011

Enable Business Process Improvement

Speed Implementation

Increase Revenue

Speed Time to Market

Focus on Core Competencies

Reduce Risk

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Top Five Reasons

1. Reduce Capital Expenditures

With economic instability and reductions in capital expenditure (CAPEX) budgets, CFOs are keen to trade owned IT costs for solutions that can be logged as operating expenditures (OPEX). Booking a predictable, periodic IT expense for guaranteed service levels is more appealing to finance than writing a big check for a big IT implementation.With cloud computing, instead of making a large up-front investment in IT infrastructure, staff, and resources, customers rent computer capacity, saving CAPEX budget for revenue-generating efforts.

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Case Study: Morpho DetectionFacing a major IT overhaul, management at Morpho Detection took this rationale to heart. The US$300 million company with double-digit yearly growth and 800 global employees sells explosive, chemical, and narcotics detection products.In September 2009, General Electric sold Morpho to Safran—and Morpho had to build an entire IT department from scratch to support 900 computers and 600 mobile devices. “We needed a system that could manage our cash flow,” says Jeremy Avenier, CFO and CIO of Morpho Detection. “We also wanted to keep our costs down after the initial investment.”Management avoided asking the company’s new owners for an infusion of funds to invigorate the IT department. Instead, they turned to the managed cloud services offered through Oracle Cloud Services to host an enterprise resource planning (ERP) system, including Oracle Financials, Oracle Order Management, Oracle E-Business Suite supply chain applications, and Oracle Hyperion applications. Now, IT is an operating expense—and employees can continue to focus on their work.

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There’s tremendous benefit in relying on experts to manage IT infrastructure. The lines of business reduce requests to the already-busy IT department and avoid additional hiring, training, and management of their own IT staff. Also, managers reduce their spending on tech solutions—offerings like Oracle Cloud Services often proactively address them. In the end, this means managers spend less time working on IT and more time thinking about the business.

System administration, upgrades, and maintenance become the responsibility of the cloud services supplier.

Top Five Reasons2. Reduced IT Cost and Complexity

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Case Study: LPL Financial LPL Financial is the United States’ largest independent broker/dealer, with US$3.1 billion in annual revenue, delivering proprietary technology, brokerage, and investment advisory services to more than 12,500 financial advisors around the country. It also provides comprehensive clearing and compliance services for the advisors and supports these services with independent research, practice management programs and training, and technology.For the past 10 years, the company has seen tremendous success, making an initial public offering in November 2010. In advance of the IPO, leadership made a large investment in the company’s internal systems, including general ledger, human resources, and procurement systems. The finance organization wanted to have the systems ready within six months (to correspond with the IPO) and to use a team with necessary depth of expertise.Historically, back-office applications had been supported internally, but the capacity of the support team was limited. LPL management wanted to add new modules to an existing footprint of Oracle’s financial applications, but with the IPO on the horizon, they had to take a hard look at how to best maintain these systems.LPL’s Ayala says support was key to getting a return on investment. “What does it take to hire a few individuals internally to support a system that isn’t a core competency for the organization? And how do you keep them trained, keep the level of technical knowledge that the business needs?” he says. “With an Oracle cloud partnership, we could obtain the level of security and technical resources the finance organization needed.”

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Security and compliance are top priorities for companies looking to invest in the cloud. Sensitive customer and business data must be protected, and regulatory and reporting requirements must be rigorously met. With the right solution, CFOs must have confidence that these are top priorities for cloud services and technology providers.

“That is one of our highest priorities, both for our customers and our company,” says Avenier. “Working with Oracle and being in the cloud has made me, as CFO, a lot more comfortable with what I am approving. I can trust the people I’m working with. Had we been using our own infrastructure and database, I would have been spending a lot more time reviewing security and compliance details.”

Top Five Reasons3. Protect Data and Enable Compliance

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On-premises IT solutions can require valuable hours and investment for hardware and software setup and maintenance—and changing the environment can involve significant effort. When enterprise IT is managed by a cloud service such as Oracle Cloud Services, it’s faster to implement and easier to change. This helps companies go about their business more quickly and reduces long-term costs.

Morpho Detection reduced system implementation time by 60 percent with the help of Oracle’s managed cloud services, allowing managers to quickly start bidding on major, time-sensitive U.S. government projects representing hundreds of millions of dollars of revenue. “A technology project that would have taken 18 months was completed in 4 to 5 months,” says Avenier.

Top Five Reasons4. Deliver Innovation Quicker

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The right cloud services solution can offer CFOs in-depth technical expertise, lower IT costs, faster business returns, and peace of mind. But how does a CFO choose the right provider? Hutchinson says executives should look for a vendor that has spent considerable energy and resources in making its cloud solutions enterprise-ready.

“To be in the cloud services business in a real way takes a tremendous amount of investment,” says Hutchinson. “The right provider is constantly investing in the ability to support applications of enterprise-level size and scale.”

Hutchinson says more customers are looking to support their businesses as a whole—including their manufacturing, customer, and financial systems—in the cloud.

Top Five Reasons5. Support the Enterprise

Questions to Ask

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What are you trying to accomplish with the cloud -- i.e., where are the optimal workloads in your organization that would benefit the most from a cloud infrastructure?

How viable is the cloud vendor – years in business, financial status, etc.

Do you have the option to move back to on premise if your needs or goals change?

How flexible is the technology? Can business processes be customized or personalized without IT involvement?

How successful has the vendor been at meeting SLAs?

Will the vendor provide data migration support?

Does the vendor have clear channels for communication regarding service and performance issues?

If you have global operations, is the cloud vendor able to provide 24x7 access and help desk support globally?

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GL and AP Cloud Based Rapid ImplementationBusiness Case

Why make the transition to enterprise (Oracle E-Business Suite):

Control costsManage riskAutomate and standardize accounting practicesIncrease visibility for improved decision makingPosition for faster growthModernize outdated or non-integrated legacy systemGain efficiencies existing applications don’t provide

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Is This You?Typical Company Profile

Industry agnosticSingle location or multi-location globalScaled to suit $10M - $500M revenue companyOutdated or inadequate Financials systemLooking for more efficient Financial tracking and reportingLooking to improve Total Cost of Ownership (TCO)Limited budgetLooking to manage data across divisions including merge and purge functionality for a growing company

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Criteria For Deciding Whether Or Not To Adopt Oracle Financials

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No change Ready for ERP

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Does your current configuration meet your business requirements?

Do you wish to make changes to the current software and configuration?

Is your business structure changing significantly (more/fewer business 

units/orgs, currencies, shared services)?

Is there a need to replace 3rd party applications with software that has new 

features and functionality?

Meets requirements

Not much need

Current software and configuration are OK

Significant need

Structure is correct for our needs Our structure is 

changing/needs to change

We require changes

A change is needed

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Key Milestones

VALIDATIONCRP, Document, Update Configurations

USER ACCEPTANCEUser Acceptance Testing, Knowledge Transfer

TRANSITIONProduction Readiness – System and People

GO-LIVE and SUPPORTFirst line of support

Week 1-2 Week 3-4 Week 5-6

CONFIGURATIONDefine Support Structure, Configure GL/AP,

Create Reports

DEFINITIONCollect Requirements, Confirm Scope, Plan

Sample Timeline

Questions?

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Contact

Bryan Stroble

720.475-8600 bstroble@dbak.com

www.dbak.com