Oris4 white paper ecm and the cloud

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Oris4 white paper ecm and the cloud

  1. 1.  2 n d   A c t   I n n o v a t i o n s   I n c . 6 0 6 -­‐ 1 8 8 8   B r u n s w i c k   S t .   H a l i f a x ,   N S   C a n a d a   B 3 J   3 J 8  Peter  G.  Hickey  This  white  paper  provides  insight  on  why  Cloud  enterprise  software  continues  to  gain  popularity  and  why  organizations  are  adopting  Cloud-­‐based  ECM  solutions.  April  2012  ECM  and  the  Cloud  
  2. 2. 2nd  Act  Innovations  Inc.  2012  ECM  and  the  Cloud   2      Table  of  Contents    Executive  Summary   3  Continued  Increased  Interest  in  Cloud-­‐Based  SaaS   4  What  is  Cloud/SaaS  ECM?   4  Why  Organizations  are  Moving  to  the  Cloud   5  Hybrid  Solutions   5  Benefits  of  Cloud-­‐Based  ECM  Implementations   6  Total  Cost  of  Ownership  (TCO)   6  Quickly  Scale  Internal  Capabilities   6  Pay  as  You  Go   6  Reduce  Cost  and  Effort  of  Upgrades   6  Accessibility   6  Conclusion   6    
  3. 3. 2nd  Act  Innovations  Inc.  2012  ECM  and  the  Cloud   3                                    Executive  Summary    Enterprise  Content  Management  (ECM)  has  become  a  significant  market  as  organizations  grapple  with  the  massive  amounts  of  information  they  come  into  contact  with  on  a  daily  basis.  Cloud-­‐based  ECM  will  represent  a  significant  portion  of  this  growth  as  it  offers  significant  savings  and  comparable  features  to  on-­‐premise  ECM  applications.  Cloud  computing  applications  typically  requires  companies  to  pay  a  monthly  fee,  allowing  businesses  to  better  manage  their  cash  flow  and  reduce  capital  investment  in  IT  resources  and  infrastructure.      This  whitepaper  provides  insight  on  why  Cloud  enterprise  software  continues  to  gain  popularity  and  why  organizations  are  adopting  Cloud-­‐based  ECM  solutions.      
  4. 4. 2nd  Act  Innovations  Inc.  2012  ECM  and  the  Cloud   4    Continued  Increased  Interest  in  Cloud-­‐Based  SaaS    Growth  in  software  delivered  over  the  Cloud  continues  to  increase  in  a  dramatic  fashion.  In  2009  the  Software  as  a  Service  (SaaS)  market  had  worldwide  revenues  of  $13.1  billion.  IDC  forecasts  the  market  to  reach  $40.5  billion  by  2014,  representing  a  compound  annual  growth  rate  of  25.3%.i    This  trend  clearly  demonstrates  a  growing  acceptance  of  the  cloud  by  customers  but  also  signals  a  significant  change  in  software  delivery  by  vendors.  IDC  expects  that  less  than  15%  of  net-­‐new  software  firms  coming  to  market  will  ship  a  packaged  product  (on  CD).  By  2014,  approximately  34%  of  all  new  business  software  purchases  will  be  consumed  via  Software  as  a  Service  (SaaS),  and  SaaS  delivery  will  constitute  about  14.5%  of  worldwide  software  spending  across  all  primary  markets.ii    Robert  Mahowald,  vice  president  of  SaaS  and  cloud  services  research  at  IDC  put  it  this  way:  “Enterprise  IT  plans  are  rapidly  shifting  to  accommodate  the  growing  choices  for  sourcing  most  or  all  IT  software  functions,”  he  says.  This  includes  everything  “from  business  applications  to  software  development  and  testing,  to  service  and  desktop  management,  as  SaaS  services  become  available.”  iii  Gartner  states  that  the  ECM  market  grew  by  4.8%  in  2009  despite  global  economic  conditions  with  global  ECM  revenues  of  US$  3.5  billion  in  2009.iv  The  estimates  of  ECM’s  market  size  for  2014  range  from  $5.7  to  10.5  billion.  According  to  AIIM,  improving  efficiency  is  the  key  driver  for  continued  ECM  investment  across  all  sizes  of  organization.v        What  is  Cloud/SaaS  ECM?    Cloud  computing  delivers  a  new  method  for  organizations  to  use  applications.  Historically,  an  organization  would  buy  servers  and  install  them  within  their  premises.  Individual  licenses  of  software  used  across  the  organization  such  as  ECM,  enterprise  resource  planning  (ERP)  or  customer  resource  management  (CRM)  would  be  purchased  and  installed  on  the  servers.  Cloud  computing  eliminates  the  need  to  purchase  servers  and  buy  individual  licenses.  With  Cloud  computing,  organizations  access  applications  technologies  and  computing  power  on-­‐demand  from  internet  “clouds”  that  provide  the  server,  software  and  data  center.  The  Cloud  is  enabled  by  virtualization  technology  that  consolidates  hardware  to  improve  efficiency  and  makes  it  easier  and  less  expensive  to  deliver  on-­‐demand  computing  resources.  SaaS  is  a  delivery  model  that  allows  a  business  to  access  applications  on  a  Cloud  infrastructure.vi  
  5. 5. 2nd  Act  Innovations  Inc.  2012  ECM  and  the  Cloud   5    Why  Organizations  are  Moving  to  the  Cloud    Simply  put,  organizations  (particularly  small  to  medium  enterprises  -­‐  SMEs),  are  attracted  to  the  Cloud  because  it  delivers  business  efficiencies  that  directly  translate  into  cost  savings.  An  uncertain  economy,  increased  competition,  higher  customer  expectations  and  a  shortage  in  affordable  experienced  employees  to  build  and  maintain  IT  infrastructure  are  all  key  drivers.      In  addition  to  cost  savings,  Cloud/SaaS  computing’s  recent  growth  is  also  a  result  of  a  decrease  in  objections  that  supported  on-­‐premise  computing.  These  objections  include:  • The  misperception  that  on-­‐premise  solutions  offer  greater  functionality.  Today  most  software  applications  offer  identical  functionality  whether  it’s  via  the  cloud  or  on-­‐premise.    • Security  has  been  the  major  concern;  however  cloud  providers  have  responded  by  providing  offerings  that  are  both  highly  reliable,  secure,  and  widely-­‐accepted  in  the  market.  An  example  of  this  is  the  U.S.  governments  Central  Intelligence  Agency  which  is  one  of  its  most  secretive  operations,  and  also  its  strongest  advocate  of  cloud  computing.  The  CIA  has  adopted  cloud  computing  in  a  big  way,  and  the  agency  believes  that  the  cloud  approach  makes  IT  environments  more  flexible  and  secure.vii      Hybrid  Solutions    Oris4  is  one  of  several  products  to  be  offered  as  a  hybrid  solution.  This  has  been  done  as  a  result  of  client  expectations  of  flexibility.  While  most  clients  opt  for  a  cloud-­‐based  solution,  some  still  request  their  ECM  be  deployed  as  an  on-­‐premise  solution.  Typically  on-­‐premise  solutions  are  used  by  organizations  with  an  existing  infrastructure,  security  protocols  requiring  on-­‐premise  storage  of  all  information,  or  a  combination  of  both.      Alternatively,  an  organization  is  likely  to  prefer  a  Cloud  implementation  if  it:  • Wishes  to  avoid  an  ongoing  investment  in  infrastructure  • Wishes  to  closely  match  monthly  IT  expenses  with  the  variable  conditions  of  the  business  • Prefers  making  a  single  monthly  payment  • Wants  to  be  up  and  running  quickly  with  their  selected  solution        
  6. 6. 2nd  Act  Innovations  Inc.  2012  ECM  and  the  Cloud   6    Benefits  of  Cloud-­‐Based  ECM  Implementations    Using  a  Cloud/SaaS-­‐based  ECM  implementation  has  a  number  of  benefits  for  companies  regardless  of  their  size.    Total  Cost  of  Ownership  (TCO)  The  total  cost  of  ownership  for  any  SaaS  system  can  provide  a  significant  reduction  in  costs,  both  in  the  short  and  long  term.  Many  Cloud  applications  and  services  share  resources  and  costs  among  a  large  pool  of  users.    Quickly  Scale  Internal  Capabilities  As  companies  grow  and  add  people  they  can  typically  add  more  users  very  quickly  to  a  cloud  application.  Because  the  application  is  Cloud-­‐based,  remote  offices  do  not  require  their  own  separate  infrastructure.  Instead  of  spending  money  and  time  building  an  infrastructure,  organizations  can,  in  most  cases,  deploy  the  application  immediately.         Pay  as  You  Go  Enterprise  software  typically  requires  a  capital  investment.  On  the  other  hand,  Cloud-­‐based  applications  allow  companies  to  pay  as  they  go.  Some  companies  offer  monthly  or  yearly  plans  and  many  have  the  ability  to  export  your  information  to  a  competing  product  should  your  organization  decide  to  stop  using  a  particular  ECM.       Reduce  Cost  and  Effort  of  Upgrades  In  a  Forrester  survey,  68%  of  respondents  selected  an  SaaS  implementation  because  they  wanted  to  reduce  cost  and  effort  of  upgrades.viii  This  is  possible  because  the  application  provider  typically  performs  all  maintenance  and  upgrades  of  the  application.    Accessibility  Cloud-­‐based  solutions  allow  users  to  access  their  applications  from  any  place  at  any  time  without  the  need  for  their  organization  to  install  a  virtual  private  network  (VPN).  ix    Conclusion    Organizations  can  benefit  from  lower  overall  costs,  scalability,  ease  of  deployment  and  less  ongoing  maintenance  by  using  a  Cloud  application.  While  there  are  instances  in  which  an  on-­‐premise  solution  may  be  appropriate  for  an  organization,  reasons  against  using  cloud-­‐based  applications  such  as  security  concerns  or  lack  of  functionality  continue  to  be  proven  false.        
  7. 7. 2nd  Act  Innovations  Inc.  2012  ECM  and  the  Cloud   7                                                                                                                                  i  “IDC:  One  Third  of  All  Software  Delivered  Via  cloud  in  2014”  http://www.zdnet.com/blog/service-­‐oriented/idc-­‐very-­‐soon-­‐a-­‐third-­‐of-­‐all-­‐software-­‐delivered-­‐via-­‐cloud/5474    ii    ibid    iii  ibid    iv  “CMSWire:  ECM  Market  Fragments,  While  IBM,  Microsoft,  EMC  Lead  Gartner’s  Magic  Quadrant”  http://www.cmswire.com/cms/enterprise-­‐cms/ecm-­‐market-­‐fragments-­‐while-­‐ibm-­‐microsoft-­‐emc-­‐lead-­‐gartners-­‐magic-­‐quadrant-­‐009309.php    v  “AIIM,  State  of  the  ECM  Industry  2011”,  2011    vi  “Sage:  ERP  and  the  Cloud:  What  You  Need  to  Know”,  July  11,  2011      vii  “Computerworld:  CIA  endorses  cloud  computing,  but  only  internally”,  October  7,  2009.  http://www.computerworld.com/s/article/9139016/CIA_endorses_cloud_computing_but_only_internally    viii  “Forrester:  State  of  ERP  in  2011”,  2011  http://www.forrester.com/The+State+Of+ERP+In+2011+Customers+Have+More+Options+In+Spite+Of+Market+Consolidation/fulltext/-­‐/E-­‐RES55901    viii  “Sage:  ERP  and  the  Cloud:  What  You  Need  to  Know”,  July  11,  2011          

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