Cloud: Session 7: Cloud Computing, Software as a Service, and Sales Forecasting


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Cloud: Session 7: Cloud Computing, Software as a Service, and Sales Forecasting

  1. 1. CloudCloud Computing, Software-as-a-Service, and Sales Forecasting
  2. 2. Douglas LucyCloud Computing, Software-as-a-Service, and Sales Forecasting 4/25/2012 ©2012 SugarCRM Inc. All rights reserved. 2
  3. 3. Cloud Computing is Mainstream for Business ©2012 Adaptive Planning, Inc. All rights reserved.
  4. 4. Essential Cloud Attributes On-demand services Delivered from remote locations by third party Service delivery via the internet Multi-tenant – multiple, diverse customers share computing resources, allowing economies of scale Partitioned tenants don’t impact each other Security tightly integrated into service Scalable and elastic Increase or decrease number of users that have access to services Automatic and frequent enhancements Automatic backups integrated into services ©2012 Adaptive Planning, Inc. All rights reserved.
  5. 5. Cloud Market Drivers Cost Savings Time Savings The Cloud Scalability ©2012 Adaptive Planning, Inc. All rights reserved.
  6. 6. Why the Cloud? Speed of implementation and deployment 35% 33% Lower overall costs 26% 35% Allows us to focus resources on more important projects 31% 28% Improved business agility 28% 30% We chose the best application for our needs and were neutral on 24% 26% whether it was SaaS or not To support a large number of mobile and remote users 23% 22% Gaining a feature or functionality that is not available in a 26% 18% traditional, licensed software package Ability to substitute upfront costs with regular monthly payments 24% 18% Lack of in-house IT staff to maintain a traditional software 22% 19% solution It was the only deployment option available from software 11% 10% providers 4 - Important 5 - Very important We have a general IT strategy of preferring SaaS over on-premise 15% 6% deploymentsSample: 534 software decision-makers Source: Forrsights Software Survey, Q4 2010 ©2012 Adaptive Planning, Inc. All rights reserved.
  7. 7. 77% Lower Total Cost of Ownership forCloud-Based vs. On-Premise CPM Solutions 4-Year Total Cost of Ownership for Cloud-Based vs. On- Premise CPM Applications (10 Full Users & 15 Review Users) $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $- SaaS On-Premise IT Infrastructure Application Software Implement & Support Training Source: Hurwitz & Associates, 2010. SaaS solution analyzed: Adaptive Planning. On-premise solutions analyzed: Clarity Systems, Longview, and Prophix. ©2012 Adaptive Planning, Inc. All rights reserved.
  8. 8. Cloud Lowers Total Cost of Ownership On-Premise Software Cloud Computing Software Licenses 9% 68% Subscription Fee T C Customization O Customization & 43% ImplementationT Implementation 32%C & TrainingO Hardware 26% Source: Yankee Group DecisionNote Technology Analysis IT Personnel 14% Maintenance 7% 77% less than 1% Training On-Premise “Customers can spend up to four times the cost of their “Cloud computing yields substantial economies of scale and software license per year to own and manage their skill, and lowers total cost of ownership (TCO).” applications.” – Gartner – The Hurwitz Group “The End of Software” “The Compelling TCO Case for Cloud Computing” ©2012 Adaptive Planning, Inc. All rights reserved.
  9. 9. Business Cloud Usage Majority of business save money with the cloud 82 % Percentage of savings Businesses are into the cloud for the long term 65 of companies choose cloud % subscriptions lasting one year or more U.S. federal agencies are required to adopt a “cloud first” policy 48 % of U.S. government IT workers have moved to the cloud Source: CSC Cloud Usage Index ©2012 Adaptive Planning, Inc. All rights reserved.
  10. 10. U.S. Federal Government Cloud First Policy Agencies must default to cloud-based solutions whenever a secure, reliable, cost-effective cloud option exists Each agency CIO must identify three “must move” services, and plan to migrate them to cloud solutions Why? Build capabilities and momentum in the Federal Government Cloud Encourage industry to develop First cloud solutions for government Reduce operating costs ©2012 Adaptive Planning, Inc. All rights reserved.
  11. 11. Data Center & IT Resources On-Premise Software Cloud Computing Complex, overgrown computing Storage and server needs in hands platforms of outsourcer Depreciates quickly Shifts burden from in-house IT to Consumes large amounts of space, 3rd-party provider power, and cooling resources Frees up internal resources IT resources silo around particular Reliable service applications Huge datacenters with endless Difficult to adapt to changing storage and computing capacity business demands Add or subtract capacity as business needs change Pay only for what you use Cloud computing is a commercially viable alternative for companies in search of a cost-effective storage and server solution. ©2012 Adaptive Planning, Inc. All rights reserved.
  12. 12. Security On-Premise Software Cloud Computing Personal computers easily Superior security technology and corrupted expertise than a company trying to In-house data centers not immune protect its own data to hackers Cost of security spread over a Security cost burden number of customers In-house IT staff not necessarily SSAE 16 Audit and SOC 1 Type II most skilled at securing your data Report Infrequent audit of all processes and Availability 99.9% policies Continuous performance audits Backup/restore/disaster recovery Well-managed cloud computing can be more reliable, secure, and private. ©2012 Adaptive Planning, Inc. All rights reserved.
  13. 13. Cloud Service CategoriesSaaS: Software as a Service  Enables on-demand use of software over the InternetPaaS: Platform as a Service  Programming platform and tools as a service over the InternetIaaS: Infrastructure as a Service  Computing resources (processing power, storage, etc.) as services over the InternetBPaaS: Business Process as a Service  Business process offerings that integrate process, technology, and people, e.g., call centers, human resources ©2012 Adaptive Planning, Inc. All rights reserved.
  14. 14. SaaS is Well Established and Will Continue to Dominate the Cloud SaaS Forecast Why SaaS DominatesForecast: Total Public Cloud Markets Ready to run with next-to-no set-up $180 expenditure $160 Most SaaS applications are vitally $140 important but peripheral to core $120 enterprise operations $100 Low-risk on-ramp to wider cloud $80 adoption $60 SaaS applications deliver value $40 because their applications $20 encompass complete functionality, $0 which vendors continue to evolve 2008 2010 2012 2014 2016 2018 2020 and enhance IaaS ($) PaaS ($) BPaaS ($) SaaS ($) Business applications delivered far more cost-effectively than other implementations Sizing the Cloud April, 2011 ©2012 Adaptive Planning, Inc. All rights reserved.
  15. 15. SaaS Delivers Significant Advantages On-Premise Model ©2012 Adaptive Planning, Inc. All rights reserved.
  16. 16. SaaS Levels the Playing Field World class performance SMB Enterprise scalability for any Pay only for what you use SOHO size business NONPROFIT SMB ENTERPRISE Same features Same performance Same scalability Same reliability Same global solution ©2012 Adaptive Planning, Inc. All rights reserved.
  17. 17. Sales Forecasting CRM solutions are excellent sales operations tools Detailed insight into opportunities over next few months/quarters But significant limitations exist when used for sales forecasting & analysis Poor visibility into sales further in the future Insufficient ways to incorporate management judgments Limited snapshots of data at different points in time, for pipeline change analysis Inability to integrate external data ©2012 Adaptive Planning, Inc. All rights reserved.
  18. 18. Sales Forecasting & Analysis Solution Optimizes your investment in CRM and other sales tracking systems by enhancing their capabilities: Top-down forecasting Management adjustments Snapshots of data Driver-based planning What-if analyses Integrate External Data (Run Rate, Quota, compensation planning, etc.) Optional automatic integration of sales and financial plans Dramatically improve sales forecasting, enhance productivity, and improve alignment and collaboration among the sales management team ©2012 Adaptive Planning, Inc. All rights reserved.
  19. 19. Sales Forecasting & Analysis Solution:Integration Optional Sales Forecasting Instances Sales Instances Financial Planning Corporate Instance On-Premise Applications Detailed Forecast by Opportunity Corporate Financial Model + • Income Statement Management Adjustments • Personnel + Many More + • Expenses Additional Data • Capital (Run Rate, Quota, etc.) • Revenue + • Balance SheetCRM & Other Sales Applications Pipeline Snapshot History • Cash FlowDetailed Forecast by Opportunity ©2012 Adaptive Planning, Inc. All rights reserved.
  20. 20. Sales Forecasting & Analysis Solution:Improved Visibility into Sales Further Out Automatic import of key CRM or other source data (leads, opportunities, wins), plus other data (run-rate business, backlog, compensation detail) Multiple ways to forecast past time horizon of CRM data Drive current data into future time periods, then adjust with multiple tools Or use driver-based and assumption-driven planning to model future time periods Drivers can incorporate financial and non-financial data, such as call volume, man hours, billing rates, units, pricing, etc. Leverage CRM data and easy-to-use but sophisticated modeling tools to forecast past CRM time horizon ©2012 Adaptive Planning, Inc. All rights reserved.
  21. 21. Sales Forecasting & Analysis Solution:Easily Integrated Management Adjustments Manipulate data in Adaptive Planning, regardless of the source Or supplement it with additional data, at the detailed or higher level E.g., adjust total sales by region, or for specific product lines Multiple modeling tools make either method easy, e.g., Automatic copy forward, adjust up or down by values or percentages over time Assumptions and lookup tables facilitate calculations and what-if scenario analysis Top-down meets bottom-up forecasting, while maintaining pipeline detail ©2012 Adaptive Planning, Inc. All rights reserved.
  22. 22. Sales Forecasting & Analysis Solution:Snapshots of Pipeline Data for Analysis Create snapshots of CRM data at any chosen interval (e.g., monthly, weekly, daily) Use reports, dashboards, KPIs, scorecards with real-time pipeline snapshot data for trend and change analysis Also perform other analysis, e.g., benchmarking sales’ reps conversion rates Use drag-and-drop report builder for easy slicing and dicing of pipeline data across unlimited dimensions E.g., product, customer, channel, region, sales rep Drill down to identify root cause of variances Improve analysis of sales performance and understand key changes in forecast over time ©2012 Adaptive Planning, Inc. All rights reserved.
  23. 23. Sales Forecasting & Analysis Solution: Integrated Quota & Compensation Planning Build quota and compensation plans in same system as sales forecast Integrated planning facilitates what-if scenario analysis Take advantage of tools to calculate compensation by sales rep, territory, region, etc. Revenue targets can be set by product line, key customers, etc. Allocate targets down to individual rep level, with uplifts where appropriate Integration of sales and compensation planning decreases planningtime, improves productivity, and makes what-if analysis fast and easy. ©2012 Adaptive Planning, Inc. All rights reserved.
  24. 24. Sales Forecasting & Analysis Solution:Additional Features & Capabilities Unlimited custom dimensions, e.g., product, customer, channel, region, rep View data on multi-dimensional cube sheets, whose axes can be changed by dragging and dropping Multiple currencies and automatic currency conversion Automated consolidation, across worldwide entities and currencies Intuitive and easy to use, even for non-finance people Can be owned and managed by Sales, with no IT or Finance support required Improves collaboration among sales managers Decrease forecasting times by up to 90%, free up more time for value-added analysis, and improve overall sales execution ©2012 Adaptive Planning, Inc. All rights reserved.
  25. 25. Submit Session Feedback Select the SugarCon Mobile App: 1) Tap on this session 2) Tap on survey 3) Submit your feedback*Prizes for attendees who submit session feedback using the Mobile App 4/25/2012 ©2012 SugarCRM Inc. All rights reserved. 25
  26. 26. #SCON12 4/25/2012 ©2012 SugarCRM Inc. All rights reserved. 26