This document summarizes a webinar discussing the considerations for choosing between cloud-based and on-premises financial planning and analysis (FP&A) solutions. It outlines the key factors to evaluate such as functionality, vendor capabilities, IT strategy, costs, security, and resources. Case studies from Aeglea Biotherapeutics and insights from a survey of FP&A professionals indicate that while the cloud offers benefits like accessibility and automatic updates, on-premises may be better where security is a major concern or IT resources are readily available. Ultimately, the choice depends on an organization's unique business needs and priorities.

1. Sponsor

2. • Understand more about the cost, service, functionality,
technology considerations and business benefits when
looking at on-premises systems and cloud-based offerings.
• Comprehend the various evaluation criteria and how they
relate to each deployment option.
• Appreciate how the resulting deployments provide a
reduced reliance on spreadsheets, shortened period-end
reporting cycles, and accelerated reporting, enabling
Finance to spend more time on value-added analysis
Learning Objectives
After attending this event you will be able to:

3. Event Notes
• The slides are available under “Handouts.”
• We will send you links via email to the presentation and
the recording within 24 hrs.
• For CPE/CE/CPD: Answer all polling questions and
remain for the duration. Credits awarded in 24 hours.
– Questions on credits? Email cpe@proformative.com.
• We want to hear from you! Ask questions for the Q&A
session at the end of the event.
• Please take the short survey at the end of the webinar.

4. Ask, Share, Learn – Within the Largest Community of Corporate Finance Professionals
A Modern Finance Case Study –
Cloud or On-Premise?
Craig Schiff, CEO, BPM Partners
Joey Perrone, Director FP&A, Aeglea Biotherapeutics
Ronel Marbella, Director Product Strategy, Prophix

5. Cloud or On-Premise?

6. Definitions
 Cloud:
– A SaaS, cloud solution provided as the standard and only
approach for all of a vendor’s customers (multi-tenant)
– An on-premises product hosted for the customer by the vendor
through a third-party (multi-tenant and single-tenant)
 On-Premise:
– An on site internally hosted and operated application that is
physically installed on a company’s server

7. Overview
On-premise Cloud
Full suite available Yes Yes
Unlimited # of users Yes Yes
Unlimited database Yes Yes
Vendor ability to deliver solution fit
to unique requirements/processes
Yes Yes, unless
custom code
required
Well-defined product roadmap Yes Yes

8. Availability and Performance
On-premise Cloud
Performance maintained despite adding
users or data
No Yes, except for
hosted applications
Vendor SLA for uptime No Yes
Vendor proactively monitors
performance and availability
No Yes
Redundant data centers No Yes, in most cases
Hourly backups No Yes, in most cases

9. Upgrades
On-Premise Cloud
Always on latest software version No Yes (it’s required),
but may vary for
hosted application
Pace of innovation (frequency of
upgrades)
6 to 12 months,
longer for some
Quarterly, in most
cases
Vendor fully responsible for upgrades No Yes – customer
option to test the
upgrade in a non-
production
environment

10. Security
On-premise Cloud
Immediate security patches In some cases In most cases
Third-party audits In some cases In most cases
Penetration testing In some cases In most cases
Designed with security as an
overriding priority
No Yes
Inside the firewall Yes No

11. Available Offerings
 Every major vendor has a cloud offering
today
 Some vendors are cloud only
 Some vendors have both on-premise
solutions and cloud solutions
 Some vendors have a single product that
can be deployed on-premise or hosted

12. The BPM Pulse
Cloud or On-Premise Market Feedback

13. BPM Pulse Survey
 2016 Edition
 Approximately 300 valid responses
 Largest group of respondents in North America
 Across all industries, largest group of respondents in
manufacturing, healthcare, financial services, not for
profit, services, retail, higher education
 Company size: half midmarket, followed by
large/enterprise, and then small
 Mix of finance, IT, and operations respondents with
largest group in finance

14. Cloud/Hosted Solutions
Source: BPM Partners 2016 BPM Pulse Survey
65% Yes
35% No/Maybe
Key Data

15. Cloud Priority
Source: BPM Partners 2016 BPM Pulse Survey

16. Benefits of Cloud (Buyers)
Source: BPM Partners 2016 BPM Pulse Survey
Source: BPM Partners 2016 BPM Pulse Survey

17. Benefits of Cloud (Owners)
Source: BPM Partners 2016 BPM Pulse Survey
Cloud BPM Users

18. Cloud Concerns
Source: BPM Partners 2016 BPM Pulse Survey

19. Cloud Timing
Source: BPM Partners 2016 BPM Pulse Survey

20. Cloud Laggards
 Certain Industries
– Government
– Financial Services
– Healthcare
– #1 Reason – Security Concerns
 Larger Organizations
– Abundant IT staff, investment in existing on-
premise applications, control

21. Cost Considerations
 License fee + annual maintenance vs.
annual subscription
 Hardware/personnel costs
 Years for comparative analysis
 Cash flow benefit
 Operating expense vs. capital expense

22. Cloud Years
Source: BPM Partners 2016 BPM Pulse Survey
Source: BPM Partners 2016 BPM Pulse Survey

23. Cumulative Costs Over Time
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
On-premise 150,000 175,000 200,000 225,000 250,000 275,000
Cloud 50,000 100,000 150,000 200,000 250,000 300,000
Assumptions: 50 user system
On-premise: $ 125,000 one-time license fee; $ 25,000 annual LR&M
Cloud: $ 50,000 annual subscription

24. Cloud Source
Source: BPM Partners 2016 BPM Pulse Survey

25. Bottom Line
 Reasons to Choose Cloud:
– Company priority to move to the cloud
– Limited IT resources (personnel/hardware)
– Need easy access from anywhere
– Desire frequent and automatic updates

26. Bottom Line
 Reasons to Choose On-Premise:
– Industry/company not ready for the cloud
– IT resources readily available
– Want to control updates/with less frequency
– Looking to minimize recurring costs

27. Bottom Line
 Deployment Choice is Ideal:
– Focus on business requirements
– Can start with on-premise and move to cloud
when ready
– Most common vendor offering
 Performance Management is Valuable
Regardless of Deployment Approach

28. Primary Drivers for BPM
Source: BPM Partners 2016 BPM Pulse Survey

29. How satisfied are you with budgeting?
Source: BPM Partners 2016 BPM Pulse Survey
BPM System Users
Source: BPM Partners 2016 BPM Pulse Survey

30. Important Features
in a Financial Consolidation Solution
Source: BPM Partners 2016 BPM Pulse Survey
Source: BPM Partners 2016 BPM Pulse Survey

31. Benefits Received
Source: BPM Partners 2016 BPM Pulse Survey

32. www.prophix.com
Aeglea BioTherapeutics
Company Background
Operating since December 2013
Website: www.aegleabio.com
Head office location: Austin, Texas
Number of employees: 30
ERP: NetSuite
Description:
Aeglea BioTherapeutics, Inc., (NASDAQ:
AGLE) is a biotechnology company
committed to developing enzyme-based
therapeutics in the field of amino acid
metabolism to treat rare genetic diseases
and cancer.

33. www.prophix.com
Webinar Speaker
Joey Perrone
Director FP&A
Aeglea
Biotherapeutics
Responsibilities
• FP&A – budgets/forecasts
• Treasury
• Cash management
• Investor relations
• Management reporting

34. www.prophix.com
Business Challenges
Symptom #1:
• Difficulties for Finance to react (let alone be proactive) in
a dynamic environment
Underlying problems:
• Aeglea, a pre-revenue company, relies on external
funding
• When a financing event occurs, strategic and operational
plans will change, allowing us to grow and expand
• Need to be able to quickly update forecasts to align with
new strategy

35. www.prophix.com
Business Challenges (cont’d)
Symptom #2:
Challenges running clinical trial budgeting
Underlying problem:
Inherent complexity of clinical trials, which are unique
and difficult to predict and manage
Symptom #3:
Struggles with cash management
Underlying problem:
Need to allocate cash to projects to drive value

36. www.prophix.com
Weighing Potential Solutions
Desired features of a potential solution:
• Ability to aggregate department/project
budgets/forecasts dynamically
• Ad-Hoc financial analysis
• Management reporting
• Adjusting prior year financials to align with
current organizational structure

37. www.prophix.com
Weighing the Cloud vs.
On-Premise Implementation
• Aeglea is a strictly cloud-based company
• No investments in on-premise systems
• No internal IT staff
• Need for access anywhere with Internet
service
• User-friendly interface

38. www.prophix.com
Implementation
• My second Prophix implementation
• Entire implementation took ~40 hours
• Worked with Prophix design architect who helped
me think big picture
o Focus: design to solve today’s problems and tomorrow’s
problems
• Implementation went extremely smoothly and we
have rolled out Prophix to Accounting for ad hoc
and reporting purposes
• Workflow will be rolled out in early 2017 to the
larger company
• No huge challenges, looking forward to rollout of
new functionality in early 2017

39. www.prophix.com
First 90 Days (Until Now)
• Load 2017 budget
• Basic reporting
• Personnel planning
• Cash forecasting
• Rolling out to Accounting
as flux analysis tool
• Project reporting
Integration
• Manually load data from our NetSuite ERP
into Prophix
• Looking forward to automating this in
early 2017

40. www.prophix.com
Automating Finance Processes
Prior Processes
It would typically take two weeks
to:
• Roll up individual budgets
• Produce personnel projections
• Project reporting
• Set out cash requirements
• Make final adjustments

41. www.prophix.com
Automating Finance Processes (cont’d)
Budgeting
• Consolidating department/project budgets
• Adjusting historical financials
• Conducting personnel planning
• Project Reporting
Forecasting
• All of the above + quarterly updates to the budget

42. www.prophix.com
Automating Finance Processes (cont’d)
Reporting
• Flux analysis reports
• Trial expense reports
• Project reporting
• Profit & loss statements

43. www.prophix.com
Improved Analysis & Decision Making
Improved Analysis
• Clinical trial costs
• Project reporting
• Quicker consolidation
• Personnel planning
Data-Driven Decision Making
• Project teams are able to track project expenses
• Reporting is distributed more quickly and
answers are provided more timely
• ‘Buy ups’ to the budget are implemented more
quickly

44. www.prophix.com
Avoid relying too
heavily on
external
consultants .
You can lead this
internally!
Keys to Maximizing CPM Software
Earn buy-in
from senior
management –
from the start!
Train your
team to
ensure change
management
Ensure the
end users
understand
the templates

45. About Prophix
Established
in 1987 by finance
executives
Laser focused
on the Corporate
Management Software
(CPM) space
Prophix empowers
organizations to bring
together all data sources on
a single platform
More than
3,000 customers in
over 100 countries
Headquarters:
Toronto area, Canada. Other
locations: UK, US, South
America, Denmark, Germany
Recognized by
industry analysts for a superior
user experience

46. Cloud or On-
Premise?
Choosing what’s right for your Organization
Ronel Marbella
Director, Product Strategy

47. www.prophix .com
Recap of Perspectives
 Functionality and vendor delivery capability
should be the top two criteria in selecting a
BPM/ CPM/ EPM solution
 After the above, the choice of Cloud vs. On-
Premise depends the other factors and on the
organization’s unique situation

48. www.prophix .com
IT strategy
What Are the Organizational
Considerations?
Ease of implementation/ use
ERP/ GL/ data source location
Broad vs. localized access
Recurring or up-front costs
Ability to manage/ support
Security

49. www.prophix .com
Limited ability/ resources to
secure
Cloud-only or pursuing cloud
strategy
ERP/ GL/ other data already in
cloud
Distributed user base
Lower cost of entry/ OpEx
preference
Limited IT resources/ ability to
support
Organizations that Choose Cloud…

50. www.prophix .com
Industry standard security in-
place
On-premise strategy
ERP/ GL/ other data mostly on-
premise
Localized user base
CapEx preference/ seeking
greatest ROI
Existing IT resources/ ability to
support
Organizations that Choose On-
Premise…

51. www.prophix .com
It’s All About CHOICE
 Many different reasons drive choice between
Cloud and On-Premise
 Organizations should choose the solution that
enables them to meet the needs of their unique
situation

52. Thank You

53. Q & A

54. • Thanks to our speakers
• Join us at www.proformative.com to continue the
conversation with your peers in our community
• If you want an introduction to today’s speakers
or sponsor, tell us on the survey!
A Few Final Items

55. Sponsor