is it time to move your enterprise to the cloud

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THE RESOURCE FOR CORPORATE FINANCE, ACCOUNTING & TREASURY PROFESSIONALS

Mickey Zandi, Ph.D., Managing Director, Consulting Services

SunGard Availability Services

Understanding the Dynamics of the Cloud

The Maturing Cloud


Cloud Market Drivers

Savings

Elasticity

On Demand


Cloud Value Proposition

Year 1 Year 2 & 3 Total 3 Year Costs

Conventional SaaS Conventional SaaS Conventional SaaS

Users 150 150

License & Subscription $318,750 39% $225,000 85% $0 $450,000 $318,750 20% $675,000 95%

Support/Upgrade $114,750 14% $0 0% $229,500 $0 $344,250 22% $0 0%

Implementation & Customization $62,500 8% $16,406 6% $0 $0 $62,500 4% $16,406 2%

IT Infrastructure/Hosting $125,000 15% $0 0% $250,000 $0 $375,000 24% $0 0%

IT Personnel Support $150,000 18% $0 0% $300,000 $0 $450,000 28% $0 0%

Training (Admin & End Users) $45,000 6% $22,500 9% $0 $0 $45,000 3% $22,500 3%

Totals $816,000 100% $263,906 100% $779,500 $450,000 $1,595,500 100% $713,906 100%

Savings $552,094 68% $881,594 55%

Implementation & Customization Savings $46,094 8%

Per User Cost $10,637 $4,759

Source: www.quora.com/Salesforce-com/What-are-typical-implementation-costs-and-time-frames-for-saleforce-coms-CRM www.180systems.com/SapBusinessOneReview.php


Essential Cloud Attributes

1. On-demand Service

– Consumer can provision it automatically and as needed

2. Scalable and Elastic

– Resources are efficiently added or removed on-demand

3. Service Access

– Through standardized internet technologies and protocols

4. Multi-tenant

– Shared resources allow economies of scale

5. Metered billing

– Usage based metrics to enable multiple payment models


• Collaboration Tools, Email

• CRM, HR, Data Analytics, Expense Management, Financials

• Web Services

• Development Tools

• Backup, Disaster Recovery

• Production Support Environments Dev., Test & Stage Environments

• Virtual Servers, Storage & Data Centers

Attractive Services for the Cloud


Cloud Adoption Challenges

• Security

– Compliance

– Data Privacy

• Availability & Reliability

• Performance

• Service Level Agreement

• Software Licensing


Not all clouds are the same

Market Segment

SMB Enterprise

Use cases

Complex

Simple

Service

Technology

Certifications


Cloud Services & Delivery Models

SaaS IaaS PaaS

Software

Web Services

Virtual Servers, Storage and

Virtual Data Centers

Platform Development

Tools

Cloud Service Categories

Public Private Enterprise

Cloud Delivery Models


• Leverages existing

investments/ legacy

infrastructure

• Logical progression after

server consolidation

• Integrate with external

clouds for capacity on

demand

• Expected to be the

computing model of

choice over next 10 yrs

Hybrid-Cloud Delivery Models

PaaS Cloud Providers

SaaS Cloud Providers

Private Clouds

Traditional Colo / Managed

Services

IaaS Cloud Providers


SaaS Spend Trending Up

• SaaS revenue increasing 25.6% (CAG) & traditional licensing decreasing

– 2011 - $21.1B

– 2014 - $40.5B • 14.5% of Global Software

Revenue

• SaaS market growing

– 2012 – 85% net new software firms

– 2014 – 65% of new products from established ISV’s

– Cloud accounts for 75% of today’s SaaS delivery revenue…but 90%+ by 2014


SaaS Is A Major Growth Catalyst


Mobile Market driving Cloud Growth

Source: Cloud Security and Privacy, 1st Edition , Published 9-28-2009

Forecast for 2015

• 1 billion mobile video customers

• 15 billion devices will be able to receive content over the Internet

• 500 billion hours of content available for digital distribution


Exciting Future For Cloud Computing

Pioneer’s & Trailblazers (2007-2011)

Market Consolidation (2010-2013)

Mainstream Critical Mass & Commoditization (2012-2015)


Thank You


Corrigo’s Move to the Cloud Lyle Newkirk

Senior Vice President and Chief Financial Officer

Corrigo Incorporated


My Background

• Received MBA in Finance in 1976

• 5 years in corporate accounting at a $1B

supermarket chain

• 30 years in various financial management

positions in the software industry including:

– 8 years at MSA in the 1980s

– Controller then CFO at Peachtree Software

– 8 years as CFO at T/R Systems – took company public

– 4 years at CareCentric – Transitioned to cloud based product

– 3 years at Corrigo


Corrigo at a Glance

Offering: Software and services company specializing in

the management of facilities in multi-site

environments

Founded: 1999

Offices: Tualatin, OR; San Mateo, CA; Atlanta, GA

Solution: • Pioneer in cloud-based facility management

• Work Order and Time Tracking Software

Workforce: 70+

Growth: 20% YoY growth

Clients 4,000+ incl. Safeway, Wendy’s

and small businesses


Life Before Moving to the Cloud

• Running QuickBooks Enterprise

• Unreliable data for management reporting

• Redundant data across sales, support, finance

• Limited access to financial data and multiple locations

placed pressure on limited finance resources


Why Cloud at Corrigo?

• Cloud suite unifying CRM, ERP in one place

• Ensure lower ongoing costs

• Far more secure than running it ourselves

• Available 24x7

• Distributed anytime anywhere access

• We’re cloud based too!


Implementation Experience

• Go Live June 1 2008 on NetSuite

• Migrated data from QuickBooks,

Salesforce and QuickArrow

• Opted for best practices based deployment

• Streamlined implementation process


ERP, CRM, PSA in the Cloud – 3 Years On

• Clean, trusted financials

• All talk the same language

– everyone has access in real time

• Integrated order management process

• No management report takes longer than 10 mins

• Multi-location collaboration:

– Atlanta, California, Oregon, Florida,

Texas, Ukraine, India


Key Takeaways

• This model is a safer, secure, lower overhead

way to manage your applications

• Ideal for growing businesses

– No large upfront investment, hardware costs

– Elastic, scale up as you grow

• Great for fast-paced multi-location businesses

• Many SOX controls streamlined by

moving to the cloud


Thank You


Keri Brooke

VP Marketing, Host Analytics

The Cloud and the CFO


Agenda

• Priorities in finance

• History of financial applications

• Bridging the gap between requirements and

success

• Customer success through the cloud

• Wrap up


Priorities

• Drive Decision-making

• Elevate the Role of Finance

• Visibility and Performance Management

• Buy from vendors who know finance

© Host Analytics, Inc. 2010 Company Confidential


Evolution of Financial Applications

Dashboards and variance reports

Financial Consolidation and

Iterations

Budgets, Aggregation and version control

1st generation




Iterations


Scenario Modeling


1st generation 2nd generation

Basic Excel or

Early Finance Applications





Iterations


Strategic Decisions

Scenario Modeling

Functional/ Operational

Decisions

Tailored Excel Applications

or Finance

Applications 2.0

1st generation 2nd generation 3rd generation

Basic Excel or



5

Profit Improvements

Process Improvements




Iterations


Strategic Decisions

Scenario Modeling

Functional/ Operational

Decisions

Tailored Excel Applications

or Finance

Applications 2.0

Trad

itio

nal

Fin

ance

A

pp

licat

ion

s Fa

ct-B

ased

Dec

isio

n

Mak

ing

Sup

po

rt

1st generation 2nd generation 3rd generation

Basic Excel or



Bringing Value

– Table stakes, cost focused efficiencies

– Improving service levels

– Value add benefits


Cost Efficiencies

Lower overhead

– Reduced IT involvement

– Reduced costs of implementation

– Quick implementation times


Improve service levels

Process improvements

– Expanding the footprint of the

finance processes ….

….without the increase in

infrastructure

– Putting rigor into those financial

processes


Driving value

Profit Improvements

– Driving fact based decision making throughout the

organization

– Providing access to large groups of people

– More operational data being fed into finance

– Using “smart” content like benchmarks


Bridging the gap

Performance

Right features Dri

ven

by

ven

do

r Te

chn

olo

gy

agn

ost

ic Customization

Ease

Of Use

Benchmarks

Best people on the right problems

Integration of efforts and avoid silos

Sup

po

rte

d b

y cl

ou

d

de

live

ry

Low ongoing costs

Low initial costs

Dri

ven

by

ven

do

r su

pp

ort

ed

by

clo

ud

Access to latest functionality


The effect of improving your view into the future


Result of implementing new technology


Result of using SaaS technology


Challenges

Late and inconsistent excel data

Long, long meetings

Adjustments mid-year very hard

Sales forecasting accuracy

Solution

A single source of consistent data

Budgeting now takes half the time

What-if scenarios and ad-hoc reporting

12 month rolling forecasts

Results

Confidence in their data

Meetings are dedicated to decision-making

Self service reporting

Finance understands the model behind the numbers

No involvement from in-house IT staff

“Before, we were lucky just to get the numbers. With Corporate Performance Management we get the numbers and the whole story.”

“Budget meetings are now about the business, not about the integrity of information.”

Mark Cohen Vice President of Finance and IT, Thule Vehicle Accessories North America

Customer Case Study: Thule

See recent Computer World article featuring Thule entitled,

“Why some companies are ditching their spreadsheets” for more detail

1 Million Dollars


Challenges

Abandoned aging tool with no GL integration

No capability for timely updates during the year

No rolling forecasts

Solution

Easy access to detailed accounting data

Intuitive user interface

Managers continually look 12 months ahead

Data-driven what-if scenarios

Results

Able to explore all their possible options for growth

Planners have confidence in their decision-making

Decisions backed up by accurate timely data

Accounting and Sales collaborate

Relieved IT of support and maintenance

“Instead of having to rely on a gut feeling, we have real data. It is reassuring to see down to a dollar the impact that a decision would make”

- Kimberly Joyce

Controller and director of

finance, Bama

Bama

http://www.bama.com/


Conclusion

• Promoting fact-based decisions throughout the

corporation is key

• The cloud will help you realize the value

• SaaS financial applications can

– Elevate the role of finance quickly

– Add rigor into financial processes without increased overhead

– Expand collaboration across the corporation without increasing

associated infrastructure


Thank You


Panel Discussion and Q&A


Proformative Contact Ernie Humphrey

VP Educational Programs, Proformative [email protected]

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