Considerations for Moving Your Enterprise Mission Critical Applications to the Cloud

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Have you considered moving core business applications to the Cloud? Do you know if it makes sense for your business? This information-packed session will provide attendees with four things their enterprise should consider when evaluating moving their mission critical applications to the cloud. 

In addition, this session gives attendees:
• Insights culled from industry experts and analysts that explain how
the cloud affects costs from three angles: launch, operations, and long-term infrastructure expense.
• A review of how time-to-value and cloud launch processes differ
from on-premise launches.
• A snapshot of the processes used by cloud providers that may
drive greater security and reliability than what enterprises can afford on their own.
• Examples of how leading enterprises have moved their business to
the cloud resulting in lowered cost and better service.

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Considerations for Moving Your Enterprise Mission Critical Applications to the Cloud

  1. 1. 1Copyright © 2013. Infor. All Rights Reserved. www.infor.comCopyright © 2013. Infor. All Rights Reserved. www.infor.com 1 Is Cloud Deployment For You? Four Ways to Evaluate Brian Rose SVP, Infor Labs
  2. 2. 2Copyright © 2013. Infor. All Rights Reserved. www.infor.com Is Cloud Deployment For You? Four Ways to Evaluate Today’s session • Introductions • State of the Cloud • Cost Factors • Time to Value • Globalization and Business Effectiveness • Security and Reliability • Q&A
  3. 3. 3Copyright © 2013. Infor. All Rights Reserved. www.infor.com Is Cloud Deployment For You? Four Ways to Evaluate • Introductions • State of the Cloud • Cost Factors • Time to Value • Globalization and Business Effectiveness • Security and Reliability • Q&A
  4. 4. 4Copyright © 2013. Infor. All Rights Reserved. www.infor.com Cloud Environment "The cloud will completely disrupt the ERP market. The world is moving to the cloud, and it will be the most important factor in the development of ERP over the next 10 years or more.” - Nigel Rayner, Gartner, (in ZDNet, “How the Cloud is Going to Reinvent ERP – and How Long It Will Take,” Aug 2013)
  5. 5. 5Copyright © 2013. Infor. All Rights Reserved. www.infor.com Cloud Market Trends Survey Results: • 47% plan to move their ERP to the cloud in the next 5 years • 26% plan to move in the next 3 years • 30% will keep majority of ERP on premise
  6. 6. 6Copyright © 2013. Infor. All Rights Reserved. www.infor.com The analysts say.. 23 50% 1/5 109% 23% to 50% increasing willingness to consider SaaS ERP ** The cloud software model will account for $1 of every $5 spent on software * Spend on Cloud ERP will more than double (increase by 109%) **** by 2016 ** 2009-2012 *** 2012-2017
  7. 7. 7Copyright © 2013. Infor. All Rights Reserved. www.infor.com The Cloud Revolution: 4 Drivers
  8. 8. 8Copyright © 2013. Infor. All Rights Reserved. www.infor.com Is Cloud Deployment For You? Four Ways to Evaluate • Introductions • State of the Cloud • Cost Factors • Time to Value • Globalization and Business Effectiveness • Security and Reliability • Q&A
  9. 9. 9Copyright © 2013. Infor. All Rights Reserved. www.infor.com Total Cost of Ownership Infrastructure
  10. 10. 10Copyright © 2013. Infor. All Rights Reserved. www.infor.com On-Premise Cloud-Deployed Costs: On-Premise vs. Cloud Upfront costs: Large investment required…….…….vs. How financed: Capital expense………………..…….vs. Variability: Varies by factors such as number of updates needed, revenue, etc…....vs. Minimal upfront costs. Operating expense More predictable – and you always have latest version
  11. 11. 11Copyright © 2013. Infor. All Rights Reserved. www.infor.com Predictability “Organizations with Cloud/SaaS ERP spent exactly 100% of their ERP implementation budget on implementation, compared to organizations with on-premise ERP that went 12% over budget.” - Aberdeen Group, “Is Cloud ERP Right for You?” September 2012
  12. 12. 12Copyright © 2013. Infor. All Rights Reserved. www.infor.com Infrastructure Cost Example
  13. 13. 13Copyright © 2013. Infor. All Rights Reserved. www.infor.com Direct Infrastructure Operational & Migration costs Cloud Value - Gathering Cost Information • Servers • Storage • Backup hardware and software license and maintenance • Security hardware and software license and maintenance • Database maintenance cost • OS maintenance cost • Real Estate • Power and Cooling • Patching • Customizations • Test environments • Labor/People costs • Database Administrators • Slices of management time • Ongoing major version updates every few years • Initial implementation • Training • Disaster Recovery/HA
  14. 14. 14Copyright © 2013. Infor. All Rights Reserved. www.infor.com TCO Improvements 0% 5% 10% 15% 20% 25% 30% 35% 40% Decrease in time it takes to make decisions Decrease in cycle time of key processes Improvements in complete, on-time delivery Improvements in profit margins Cloud On-premise 36 16 24 25 17 21 18 7 3X the improvement in profit margins Source: Aberdeen Group, “The Benefits of Cloud ERP: It’s About Transforming Your Business
  15. 15. 15Copyright © 2013. Infor. All Rights Reserved. www.infor.com Managed Infrastructure Resource Constraints Key Requirements • Simplified IT infrastructure management • Worry free upgrades • Clearly defined roles and responsibilities • Transparent, predictable pricing • Select World Class Provider Focus on InnovationDo More with Less/Same
  16. 16. 16Copyright © 2013. Infor. All Rights Reserved. www.infor.com Is Cloud Deployment For You? Four Ways to Evaluate • Introductions • State of the Cloud • Cost Factors • Time to Value • Globalization and Business Effectiveness • Security and Reliability • Q&A
  17. 17. 17Copyright © 2013. Infor. All Rights Reserved. www.infor.com ERP SaaS Growth 2012 2013 Forrester Research, May 2014 12% 24% 2012 2013 41% 65% of enterprises expect to be using SaaS in some ERP role before the end of 2015 Two-thirds increase on what respondents were saying a year ago Planning to use SaaS alongside on-premise Replaced or plan to replace existing ERP with SaaS Double growth in planned SaaS ERP 50% growth in SaaS alongside ERP
  18. 18. 18Copyright © 2013. Infor. All Rights Reserved. www.infor.com Time to Value: Cloud vs. On-Premise 0 5 10 15 20 25 30 Average Months 'til first go live Average Months 'til ROI/Payback Cloud On-Premise Sources: IDC, “The Business Value of Amazon Web Services Accelerates Over time”; Panorama Consultants “How Much Can you Afford to Lose with Your ERP Implementation?” and Aberdeen “Is Cloud ERP Right for You?” 6.95 7.1 27 11.02
  19. 19. 19Copyright © 2013. Infor. All Rights Reserved. www.infor.com Complete solution - Industry suites in the cloud Last mile - industry features and content are pre-built One unified solution from one provider Global application and infrastructure Proven industry specific best practices Speed to deployment Continuous innovation and upgrades Modern technologies, social computing, BI Time to Value: Considerations
  20. 20. 20Copyright © 2013. Infor. All Rights Reserved. www.infor.com Time to Value – Complete Solutions One Example Automotive supplier business process model Strategy and vision Core functions Support functions Sourcing & procurement Production management Product development Materials management Automotive order management Planning and scheduling Customer relationship management Enterprise strategy Organization management Quality management Technology Financial management Human capital management Enterprise asset management
  21. 21. 21Copyright © 2013. Infor. All Rights Reserved. www.infor.com Time to Value – Micro-Vertical Focus Examples
  22. 22. 22Copyright © 2013. Infor. All Rights Reserved. www.infor.com Automatic Upgrades New Technologies Easy Access to New Technology Constant Change Key Requirements • Maximize the value of existing systems • Simplified integration to existing systems . Pre-built Integrations to technology like mobility, big data, social business
  23. 23. 23Copyright © 2013. Infor. All Rights Reserved. www.infor.com Is Cloud Deployment For You? Four Ways to Evaluate • Introductions • State of the Cloud • Cost Factors • Time to Value • Globalization and Business Effectiveness • Security and Reliability • Q&A
  24. 24. 24Copyright © 2013. Infor. All Rights Reserved. www.infor.com Global Expansion Agility Terms Key Requirements: • Scalable processing optimizes capacity costs • Global cloud network managed infrastructure • Pre-built integrations simplifies tech adoption Divestitures Mergers and Acquisitions Joint Ventures New Markets Offshoring/ Near Shoring New Locations
  25. 25. 25Copyright © 2013. Infor. All Rights Reserved. www.infor.com Cloud Globalization Trends
  26. 26. 26Copyright © 2013. Infor. All Rights Reserved. www.infor.com Is Cloud Deployment For You? Four Ways to Evaluate • Introductions • State of the Cloud • Cost Factors • Time to Value • Globalization and Business Effectiveness • Security and Reliability • Q&A
  27. 27. 27Copyright © 2013. Infor. All Rights Reserved. www.infor.com Security and Reliability: Cloud vs. on- premise “(Cloud) end users benefited from fewer service disruptions and quicker recovery, reducing downtime by 72% and savings nearly $32,600 per application per year.” - Randy Perry, IDC (in “The Business Value of Amazon Web Services Accelerates Over time” December 2013)
  28. 28. 28Copyright © 2013. Infor. All Rights Reserved. www.infor.com Security Best Practice Security Key Requirements: • Security policy that focuses on the ISO 27001 standard • Encryption using mechanisms like TLS/SSL, PGP and secure FTP • Server authentication through digital certificates • Industry Compliance Application Security Network Security Physical Security Operations Security Monitoring
  29. 29. 29Copyright © 2013. Infor. All Rights Reserved. www.infor.com Emphasis on security Information Security Office • Chief Information Security Office – Jim Hoover, CISSP, CISM, CEH, ITILf • New compliance focus on industry, U.S. and international standards • Alignment to best practices for security governance • Significant investment in security controls • Independent 3rd party assessments to provide unbiased security posture review • Alignment to best practices and complimentary controls • Standardization of secure development practices
  30. 30. 30Copyright © 2013. Infor. All Rights Reserved. www.infor.com Security and compliance ISO 27001
  31. 31. 31Copyright © 2013. Infor. All Rights Reserved. www.infor.com Redundancy, Replication, Recovery Reliability Terms Key Requirements: • Thorough redundancy of power, and equipment • Data backed up to off-site data centers • 99.5% guaranteed server availability, 24/7/365; 99.9% historically • SLA’s for application uptime, disaster recovery, response time to incidents Redundancy Replication Recovery + +
  32. 32. 32Copyright © 2013. Infor. All Rights Reserved. www.infor.com Cloud Architecture Requirements Multi-tenancy Scalability High availability Open integrations Stateless applications Supports auto-scaling Zero footprint client Automated Upgrades No local server dependency No security code scanner findings Successful penetration test Supports health check monitors Automated patching Single instance deployment No source code changes
  33. 33. 33Copyright © 2013. Infor. All Rights Reserved. www.infor.com Next Steps • Evaluate costs of move to cloud: launch, operations and infrastructure. • Consider time to value elements: implementation timeline, payback/ROI. • Factor in the business effectiveness improvements and your global needs. • Compare existing data management security and reliability measures with potential vendor capabilities.
  34. 34. 34Copyright © 2013. Infor. All Rights Reserved. www.infor.com

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