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THE RESOURCE FOR CORPORATE FINANCE, ACCOUNTING & TREASURY PROFESSIONALS

Understanding the Dynamics of the Cloud
The Maturing Cloud
Mickey Zandi, Ph.D., Managing Director, Consulting Services
SunGard Availability Services

Cloud Market Drivers

Savings

On Demand

Elasticity


Cloud Value Proposition

Year 1 Year 2 & 3 Total 3 Year Costs
Conventional SaaS Conventional SaaS Conventional SaaS
Users 150 150

License & Subscription $318,750 39% $225,000 85% $0 $450,000 $318,750 20% $675,000 95%

Support/Upgrade $114,750 14% $0 0% $229,500 $0 $344,250 22% $0 0%

Implementation & Customization $62,500 8% $16,406 6% $0 $0 $62,500 4% $16,406 2%

IT Infrastructure/Hosting $125,000 15% $0 0% $250,000 $0 $375,000 24% $0 0%

IT Personnel Support $150,000 18% $0 0% $300,000 $0 $450,000 28% $0 0%

Training (Admin & End Users) $45,000 6% $22,500 9% $0 $0 $45,000 3% $22,500 3%

Totals $816,000 100% $263,906 100% $779,500 $450,000 $1,595,500 100% $713,906 100%

Savings $552,094 68% $881,594 55%

Implementation & Customization Savings $46,094 8%

Per User Cost $10,637 $4,759

Source:
www.quora.com/Salesforce-com/What-are-typical-implementation-costs-and-time-frames-for-saleforce-coms-CRM
www.180systems.com/SapBusinessOneReview.php


Essential Cloud Attributes

1. On-demand Service
– Consumer can provision it automatically and as needed
2. Scalable and Elastic
– Resources are efficiently added or removed on-demand
3. Service Access
– Through standardized internet technologies and protocols
4. Multi-tenant
– Shared resources allow economies of scale
5. Metered billing
– Usage based metrics to enable multiple payment models


Attractive Services for the Cloud

• Collaboration Tools, Email
• CRM, HR, Data Analytics,
Expense Management,
Financials
• Web Services
• Development Tools
• Backup,
Disaster Recovery
• Production Support
Environments Dev., Test &
Stage Environments
• Virtual Servers, Storage &
Data Centers


Cloud Adoption Challenges

• Security
– Compliance
– Data Privacy
• Availability & Reliability
• Performance
• Service Level Agreement
• Software Licensing


Not all clouds are the same
Service

Certifications
Complex

Use cases

Simple

Technology
SMB Enterprise
Market Segment

Cloud Services & Delivery Models

Cloud Service Categories

SaaS PaaS IaaS

Software Platform Development Virtual Servers, Storage and
Web Services Tools Virtual Data Centers

Cloud Delivery Models

Private Public Enterprise


Hybrid-Cloud Delivery Models

PaaS Cloud
• Leverages existing IaaS Cloud
Providers Providers

investments/ legacy
infrastructure
• Logical progression after
server consolidation
• Integrate with external Private Clouds

clouds for capacity on
demand
• Expected to be the
Traditional Colo SaaS Cloud
computing model of / Managed Providers
Services
choice over next 10 yrs


SaaS Spend Trending Up

• SaaS revenue increasing 25.6%
(CAG) & traditional licensing
decreasing
– 2011 - $21.1B
– 2014 - $40.5B
• 14.5% of Global Software
Revenue
• SaaS market growing
– 2012 – 85% net new
software firms
– 2014 – 65% of new products
from established ISV’s
– Cloud accounts for 75% of
today’s SaaS delivery
revenue…but 90%+ by 2014


SaaS Is A Major Growth Catalyst


Mobile Market driving Cloud Growth

Forecast for 2015
• 1 billion mobile video customers
• 15 billion devices will be able to
receive content over the Internet
• 500 billion hours of content
available for digital distribution

Source: Cloud Security and Privacy, 1st Edition , Published 9-28-2009


Exciting Future For Cloud Computing

Mainstream
Critical Mass &
Market Commoditization
Consolidation (2012-2015)
(2010-2013)
Pioneer’s &
Trailblazers
(2007-2011)


Thank You



Corrigo’s Move to the Cloud
Lyle Newkirk
Senior Vice President and Chief Financial Officer
Corrigo Incorporated

My Background

• Received MBA in Finance in 1976
• 5 years in corporate accounting at a $1B
supermarket chain
• 30 years in various financial management
positions in the software industry including:
– 8 years at MSA in the 1980s
– Controller then CFO at Peachtree Software
– 8 years as CFO at T/R Systems – took company public
– 4 years at CareCentric – Transitioned to cloud based product
– 3 years at Corrigo


Corrigo at a Glance

Offering: Software and services company specializing in
the management of facilities in multi-site
environments
Founded: 1999
Offices: Tualatin, OR; San Mateo, CA; Atlanta, GA

Solution: • Pioneer in cloud-based facility management
• Work Order and Time Tracking Software
Workforce: 70+
Growth: 20% YoY growth

Clients 4,000+ incl. Safeway, Wendy’s
and small businesses


Life Before Moving to the Cloud

• Running QuickBooks Enterprise
• Unreliable data for management reporting
• Redundant data across sales, support, finance
• Limited access to financial data and multiple locations
placed pressure on limited finance resources


Why Cloud at Corrigo?

• Cloud suite unifying CRM, ERP in one place
• Ensure lower ongoing costs
• Far more secure than running it ourselves
• Available 24x7
• Distributed anytime anywhere access
• We’re cloud based too!


Implementation Experience

• Go Live June 1 2008 on NetSuite
• Migrated data from QuickBooks,
Salesforce and QuickArrow
• Opted for best practices based deployment
• Streamlined implementation process


ERP, CRM, PSA in the Cloud – 3 Years On

• Clean, trusted financials
• All talk the same language
– everyone has access in real time
• Integrated order management process
• No management report takes longer than 10 mins
• Multi-location collaboration:
– Atlanta, California, Oregon, Florida,
Texas, Ukraine, India


Key Takeaways

• This model is a safer, secure, lower overhead
way to manage your applications
• Ideal for growing businesses
– No large upfront investment, hardware costs
– Elastic, scale up as you grow
• Great for fast-paced multi-location businesses
• Many SOX controls streamlined by
moving to the cloud



The Cloud and the CFO
Keri Brooke
VP Marketing, Host Analytics

Agenda

• Priorities in finance
• History of financial applications
• Bridging the gap between requirements and
success
• Customer success through the cloud
• Wrap up


Priorities

• Drive Decision-making
• Elevate the Role of Finance
• Visibility and Performance Management
• Buy from vendors who know finance

© Host Analytics, Inc. 2010 Company Confidential


Evolution of Financial Applications

Dashboards and
variance reports

Financial
Consolidation and
Iterations

Budgets,
Aggregation and
version control

1st generation



Scenario
Modeling

Dashboards and
variance reports

Basic Excel Financial
or Consolidation and
Early Finance Iterations
Applications
Budgets,
Aggregation and
version control

1st generation 2nd generation



Functional/
Operational
Decisions

Strategic
Decisions

Scenario
Modeling

Dashboards and
variance reports

Tailored Excel
or Applications
Consolidation and
Early Finance or Iterations
Applications Finance
Applications 2.0
Budgets,
Aggregation and
version control

1st generation 2nd generation 3rd generation



Functional/
Operational
Fact-Based Decision

Decisions Profit
Making Support

Improvements
Strategic
Decisions

Scenario
Modeling

Dashboards and
Traditional Finance

variance reports
Process
Applications

Tailored Excel 5 Improvements
or Applications
Consolidation and
Early Finance or Iterations
Applications Finance
Applications 2.0
Budgets,
Aggregation and
version control

1st generation 2nd generation 3rd generation


Bringing Value

– Table stakes, cost focused efficiencies
– Improving service levels
– Value add benefits


Cost Efficiencies

Lower overhead
– Reduced IT involvement
– Reduced costs of implementation
– Quick implementation times


Improve service levels

Process improvements
– Expanding the footprint of the
finance processes ….
….without the increase in
infrastructure
– Putting rigor into those financial
processes


Driving value

Profit Improvements
– Driving fact based decision making throughout the
organization
– Providing access to large groups of people
– More operational data being fed into finance
– Using “smart” content like benchmarks


Bridging the gap

Ease

Driven by vendor
Of Use

Technology
Customization

agnostic
Performance

Right features
supported by
Driven by

Access to latest functionality
vendor

cloud

Low ongoing costs

Low initial costs
Supported by cloud

Benchmarks
delivery

Best people on the right problems

Integration of efforts and avoid silos


The effect of improving your
view into the future


Result of implementing new technology


Result of using SaaS technology


Customer Case Study: Thule
Challenges
 Late and inconsistent excel data
 Long, long meetings
“Before, we were lucky just to  Adjustments mid-year very hard
get the numbers. With  Sales forecasting accuracy
Corporate Performance
Management we get the 1 Million
Solution
numbers and the whole story.”  A single source of consistent data
Dollars
 Budgeting now takes half the time
“Budget meetings are now  What-if scenarios and ad-hoc reporting
about the business, not about  12 month rolling forecasts
the integrity of information.”
Results
Mark Cohen  Confidence in their data
Vice President of Finance and IT,  Meetings are dedicated to decision-making
Thule Vehicle Accessories North America
 Self service reporting
 Finance understands the model behind the numbers
 No involvement from in-house IT staff
See recent Computer World article featuring Thule entitled,
“Why some companies are ditching their spreadsheets” for more detail


Bama

Challenges
 Abandoned aging tool with no GL integration
“Instead of having to rely
 No capability for timely updates during the year
on a gut feeling, we have
real data. It is reassuring  No rolling forecasts
to see down to a dollar Solution
the impact that a decision  Easy access to detailed accounting data
would make”  Intuitive user interface
 Managers continually look 12 months ahead
- Kimberly Joyce
Controller and director of  Data-driven what-if scenarios
finance, Bama Results
 Able to explore all their possible options for growth
 Planners have confidence in their decision-making
 Decisions backed up by accurate timely data
 Accounting and Sales collaborate
 Relieved IT of support and maintenance


Conclusion

• Promoting fact-based decisions throughout the
corporation is key
• The cloud will help you realize the value
• SaaS financial applications can
– Elevate the role of finance quickly
– Add rigor into financial processes without increased overhead
– Expand collaboration across the corporation without increasing
associated infrastructure


Panel Discussion and Q&A


We will send you a follow-up survey and would
appreciate your feedback.

Please join us at www.proformative.com to ask any
additional questions you may have and to continue
this conversation with your peers and the experts
you heard from today.
Proformative Contact
Ernie Humphrey
VP Educational Programs, Proformative
ehumphrey@proformative.com


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