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Why Cloud Computing is
Changing the Way we do Business
Presented By: Chuck Jerome
Evaluating Change
• Does it align with or
support our strategy?
• Important to evaluate
technology to
determine if it meet...
Cloud: Option or Impending Future
What is Cloud Computing?
We’re All Using the Cloud
•Social Media Marketing
•Facebook & Twitter
•YouTube
•LinkedIn

•Banking/Finance/Investment
•Onl...
The Game is Changing
• 7 out of 10 companies that use cloud services will
move more applications – Source: MimeCast
• By y...
3 Levels of Cloud Delivery
Function

SaaS

PaaS

IaaS

Service

Software

Platform

Infrastructure

Hardware

Vendor

Vend...
Understanding All Models
On-Premise

3rd Party Hosted

Hosted

SaaS

Hosting

You

3rd Party

Publisher

Publisher

Licenc...
3 Levels of Cloud Delivery
• SaaS: offers a contractual service to deploy, host,
manage and rent access to an application ...
3 Levels of Cloud Delivery
• IaaS: Infrastructure as a Service allows users
to manage their own applications, data and
ope...
Current ERP Deployments
Big Changes in Small Organizations

Small Org
< $50M Rev
SaaS ERP Deployments vs On-Prem
Industry
Financial Services

SaaS
33%

On-Premise
33%

Healthcare
Manufacturing
Non-Profit...
Increasing Cloud Considerations
Cloud – Pros & Cons?
PROs

CONs

Easier to Implement and Support
Cheaper to Pay For
Less Flexible for Customization
Forced...
Deployment Model not the
Deciding Factor
Positive Factors Influencing SaaS
Calculating TCO
Computer Hardware &
Programs

Operation Expenses

•
•
•
•
•
•
•
•

•
•
•
•

Network HW & SW
Server HW & SW...
Validating Perceptions
Validating Perceptions

27%+ more
effort for IT
resources to
support OnPremise
Concerns Influencing SaaS Decisions
Cloud – More Secure & Stable
Aberdeen's report
"Web Security in
the Cloud: More
Secure! Compliant!
Less Expensive!"
The Tipping Point
The Tipping Point
• Smaller Organizations:
– Implementing ERP for the 1st time

• Larger Corporations:
– Multi-tiered ERP ...
Superior Performance with SaaS
Deriving Greater Operational
Improvements
Sage’s Cloud Offering
• Sage 300
Online
• Sage 300
Cloud –
Coming Soon
• Sage CRM
• Sage 50
Sage Connected Services
Key Takeaways
•
•
•
•
•
•
•

Can you support your current system?
Does the system have the functionality you need?
Are you...
Don’t Leap Blindly into the Cloud
BAASS Connect 2013 - Why Cloud Computing is Changing the way we do Business
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BAASS Connect 2013 - Why Cloud Computing is Changing the way we do Business

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Transcript of "BAASS Connect 2013 - Why Cloud Computing is Changing the way we do Business"

  1. 1. Why Cloud Computing is Changing the Way we do Business Presented By: Chuck Jerome
  2. 2. Evaluating Change • Does it align with or support our strategy? • Important to evaluate technology to determine if it meets the needs of the business
  3. 3. Cloud: Option or Impending Future
  4. 4. What is Cloud Computing?
  5. 5. We’re All Using the Cloud •Social Media Marketing •Facebook & Twitter •YouTube •LinkedIn •Banking/Finance/Investment •Online banking •E-Trade •Fidelity •Data Back-Up and Storage •DropBox •iCloud •Carbonite, CrashPlan •Productivity Tools •Google Apps •Microsoft Office 365
  6. 6. The Game is Changing • 7 out of 10 companies that use cloud services will move more applications – Source: MimeCast • By year end 2016, more than 50% of Global 1000 Companies will have stored customer-sensitive data in the public cloud – Source: IDC • By year end 2016, one third of all digital content will be stored on the cloud - Source: Gartner
  7. 7. 3 Levels of Cloud Delivery Function SaaS PaaS IaaS Service Software Platform Infrastructure Hardware Vendor Vendor Vendor Operating Systems Vendor Vendor Optional Databases Vendor Vendor Optional Application Vendor Customer Customer Management Vendor Vendor Customer Backups Vendor Vendor Customer Example Sage Amazon, MS Azure 3rd Party
  8. 8. Understanding All Models On-Premise 3rd Party Hosted Hosted SaaS Hosting You 3rd Party Publisher Publisher Licences Perpetual Subscription Subscription Subscription Purchase CAPEX OPEX OPEX OPEX Solution Open Open Limited Strict Customization Unlimited Unlimited Limited None Examples Sage 300 local Amazon / MS Azure Sage Online Sage Cloud 2014
  9. 9. 3 Levels of Cloud Delivery • SaaS: offers a contractual service to deploy, host, manage and rent access to an application from a centrally managed facility. They are responsible for … managing a software application or a set of applications • PaaS: Platform as a Service provides applications, frameworks and tools running on hardware managed by a Vendor. MS Windows Azure platform is an example. “Your stuff is hosted.”
  10. 10. 3 Levels of Cloud Delivery • IaaS: Infrastructure as a Service allows users to manage their own applications, data and operating systems leaving servers, storage and networking to a vendor. Focuses on management of the network and servers. Which option is right for your business depends on how much control you want over your company’s software and computing resources.
  11. 11. Current ERP Deployments
  12. 12. Big Changes in Small Organizations Small Org < $50M Rev
  13. 13. SaaS ERP Deployments vs On-Prem Industry Financial Services SaaS 33% On-Premise 33% Healthcare Manufacturing Non-Profit 13% 8% 6% 75% 78% 71% Professional Services Retail Technology Utilities Logistics 12% 17% 11% 25% 19% 76% 50% 77% 58% 57%
  14. 14. Increasing Cloud Considerations
  15. 15. Cloud – Pros & Cons? PROs CONs Easier to Implement and Support Cheaper to Pay For Less Flexible for Customization Forced Upgrades when may not want them Deployment Model not even in Top 10 ERP selection criteria – more prevalent in Best-in-Class Organizations
  16. 16. Deployment Model not the Deciding Factor
  17. 17. Positive Factors Influencing SaaS
  18. 18. Calculating TCO Computer Hardware & Programs Operation Expenses • • • • • • • • • • • • Network HW & SW Server HW & SW Workstation HW & SW Installation Integration Purchasing research Warranties and licenses License Tracking Compliance • Migration expenses • Risks: susceptibility to vulnerabilities, availability of upgrades, patches and future licensing policies • • • • • • • • Long-Term Expenses Infrastructure • Replacement Electricity – Equip, Cooling • Future upgrade or Testing costs scalability expenses Downtime, outage and • Decommissioning failure expenses Diminished performance Security Backup and Recovery Technology training Audit (internal & external) Insurance IT Resources Corporate management time
  19. 19. Validating Perceptions
  20. 20. Validating Perceptions 27%+ more effort for IT resources to support OnPremise
  21. 21. Concerns Influencing SaaS Decisions
  22. 22. Cloud – More Secure & Stable Aberdeen's report "Web Security in the Cloud: More Secure! Compliant! Less Expensive!"
  23. 23. The Tipping Point
  24. 24. The Tipping Point • Smaller Organizations: – Implementing ERP for the 1st time • Larger Corporations: – Multi-tiered ERP strategy • Corporate standard – Administrative • Support local business models – Operational
  25. 25. Superior Performance with SaaS
  26. 26. Deriving Greater Operational Improvements
  27. 27. Sage’s Cloud Offering • Sage 300 Online • Sage 300 Cloud – Coming Soon • Sage CRM • Sage 50 Sage Connected Services
  28. 28. Key Takeaways • • • • • • • Can you support your current system? Does the system have the functionality you need? Are you distributed globally? Do you believe that security is a concern? How much time do you have? How are you paying for this? Will your employees be able to use it?
  29. 29. Don’t Leap Blindly into the Cloud
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