This document provides an overview and comparison of SaaS (Software as a Service) vs on-premise business intelligence (BI) solutions. It discusses the history and components of cloud computing including infrastructure, platforms, and software as a service. Examples are given of both on-premise and SaaS BI solutions. Considerations for choosing between the options include security, data volumes, customization needs, integration requirements, and desire for competitive advantage. Both approaches have ongoing costs associated with support and maintenance.

1. Comparing SaaS vs. On-Premise BI Larry Christensen, CBIP Wynne Systems, Inc. “What gets measured gets managed” www.wynnesystems.com

2. “Any Day on this side of the grass is a good one!”Unknown

3. “The most dangerous phrase in the language is: It’s always been done that way.”Grace Hopper

4. Cloud Vs. On-Premise ‘Cloud’ is the New Term

5. BI Definitions/Market Predictions Why On-Premise Why SaaS What to look out for Hybrids Comparative Configurations and Costs Q&A Agenda

6. But first… WHO IS THIS GUY?

7. what exactly is BUSINESS INTELLIGENCE? Knowledge Knowledge is POWER

8. HERE ARE THE FACTS The human brain can remember 4-7 things at any given time 1 F500 Execs make ‘gut’ decisions 40% of the time (Accenture) 2

9. where’s the gain in BUSINESS INTELLIGENCE? 1 Ease of getting to information 2 Insight 3 More timely decisions 4 Better decisions 5 Direction

10. Business Intelligence Report and analyze data improve performance uncover fleeting opportunities Helps you analyze and make better business decisions improve sales or customer satisfaction or staff morale Provides information warning you of important events, such as below average conditions market changes poor staff performance take preventative steps Use information wisely

11. Data warehousing and on-line analytical processing (OLAP) Data warehouse is maintained separately OLAP uses multi-dimensional “Cubes” Delivers better analytics and faster performance Business Intelligence

12. What do the “Experts” Say? BI Predictions 1 TDWI 2 Gartner 3 Forrester 4 Accenture 5 Aberdeen Group

13. BI Predictions The market for business intelligence and analytics grew by 13.4% in 2010 to break the $10 billion barrierGartner, 2010

14. BI Predictions Nearly 40% of shops are currently practicing advanced analytics By 2012 - 85% will be doing as much TDWI Research Analyst, Philip Russom

15. Cloud Predictions Nine out of ten companies plan to grow their use of software-as-a-service (SaaS) More than one third of respondents (37%) plan to replace on-premises software with SaaS to drive down total cost of ownership (TCO) Gartner Survey

16. Cloud Predictions The world market for cloud service will expand from $40.7B in 2011 to > $241B in 2020. There will be a new segment called Business Process as a Service (BPaaS) Forrester, 4/27/11

17. CASE STUDY CLIENT Discount Tire THEIR GOAL Sales Analysis (700+ Stores) plus many other aspects of the business. WHAT WE DID Work with Users to define and create Analysis. One of the fun aspects was “Best Ever Report” www.wynnesystems.com

18. CASE STUDY CLIENT Insert image here, if possible. United Rentals – 550+ locations THEIR GOAL Internal Staff working with all aspects of company and sales analysis. WHAT WE DID Installed On-Premise ERP and Business Intelligence. Use multiple BI Solutions www.wynnesystems.com

19. CASE STUDY CLIENT Insert image here, if possible. Finning CAT - #1 in World THEIR GOAL Sales Analysis plus many other aspects of the business. WHAT WE DID Hybrid Installation On-Premise ERP and SaaS BI. www.wynnesystems.com

20. CASE STUDY CLIENT Nokia THEIR GOAL Company analysis WHAT WE DID SaaS Business Intelligence www.wynnesystems.com

21. Auto Dealers

22. What Makes these Installations Work? Collaboration between IT, Business User and Vendor

23. The BI Challenge “Organizations are facing pressures to deliver information that is timely and effective in meeting business goals. This requires companies to have access to the information, the ability to combine, aggregate and integrate the information, and then deliver it to people when, where and how they need it.” “Beyond Spreadsheets: the value of BI and Analytics,” Aberdeen Group, Inc. January 2009

24. BI needs to be Pervasive Casual / Users Reports Presentations Exception Reports Dashboards Consultant / Analyst / 3rd Party Excel Users - Experienced User Power User

25. BI the ‘Solution’ (SaaS or On-Premise) Trends and Differences Scorecarding Integrated Security Dashboarding / KPI’s Drilling / Analytics e-Mailing BI Charting and Graphing Traffic Lighting Web Enabled Export to EXCEL Data Mining FROM EXCEL Exception Reporting

26. Dashboards - Present KPI’s

27. Manage by Exception – Traffic Lights Filter and Sort by any of the columns in the report to highlight top or bottom performers

28. Exception ReportingEvent Driven Analysis Trigger email reports and alerts based on thresholds for indicators Schedule reports to be emailed on a regular basis

29. Universal Truth Companies have a lot of data available Without analytics, companies are constrained in their decision-making capabilities IT managers have been mandated to transform data into competitive advantage

30. Business Justification/ROI BI uses OLAP Technology to: Improve the speed and quality of decision making Helps you understand customer needs and markets See what is happening in your business months earlier Reduce time spent generating or waiting for reports Eliminate time determining who has the “right numbers” Reduce paper cost for reporting Reduce programming cost for custom reports ALLOWS YOUR EMPLOYEES TO MAKE BETTER AND FASTER BUSINESS DECISIONS WITH FEWER PEOPLE RESOURCES!

31. Universal Truth More Output from IT Required NO Additional Money or Resource is Allocated to IT

32. BI Options On-Premise – Traditional License On- Premise – Open Source License SaaS – Subscription License

33. On-PremiseTraditional License

34. On-Premise – When? Security Large File Sizes Control / Flexibility / Customization Integration with Applications Desire to Create Own Charts, Reports and KPI’s Competitive Advantage

35. Source: IDC

36. Example On-Premise Quotation

37. Other Costs IT People Back-up + Off-site Service Fault Tolerant 2nd System, 2nd Location New Hardware every 3-5 years Updates/Upgrades

38. Other IT Responsibilities Disk Space Monitoring/Management RAID/SAN Storage Management Defragmentation OS-level Patches/Upgrades Network Management

39. On-PremiseOpen Source License

40. Open Source Same IT Responsibilities as Traditional Licenses generally cost less Jaspersoft, Pentaho, Birt Versions Open Source (Free) Commercial Licenses (Paid) Annual Maintenance Pro-Services

41. Software as a Service

42. History 60’s and 70’s = Time Sharing Dumb Terminals 90’s = Applications Service Provider (ASP) User Pays for License and responsible for Upgrades and maintenance and Vendor Hosts Application Then Came SaaS Does not own the S/W License and not responsible for Upgrades and Maintenance Now we say “Cloud”

43. Cloud Computing Cloud computing refers to IT services that are purchased and delivered on demand over a network, either the public Internet or a private IP-based network. Cloud computing services are powered by highly virtualized processing and storage systems in data centers that are made available via a Web interface to remote users.

44. Know Who You’re Dealing With

45. Cloud Components

46. Infrastructure

47. Infrastructure Internet Internet Fault Tolerant Building No single Point of Failure Generators, etc…

48. Infrastructure - Simple Internet Router Firewall Gigabit Switch 1 Physical Server Applications VM Ware S/W Partitions

49. Infrastructure Internet Internet 2 VPN Connections to Cloud Servers Router Router Firewall Firewall Load Balancing Load Balancing Gigabit Switches Gigabit Switches NIC NIC NIC NIC 3 Physical Servers VM Ware NIC NIC NIC NIC Load Balancing NIC NIC NIC NIC 1 Physical Server + SAN/NAS S/W Partitions Applications

50. Infrastructure DR – 2nd Location Duplicate System Internet Internet 2 VPN Connections to Cloud Servers Router Router Firewall Firewall Load Balancing Load Balancing Gigabit Switches Gigabit Switches NIC NIC NIC NIC 3 Physical Servers VM Ware NIC NIC NIC NIC Load Balancing NIC NIC NIC NIC 1 Physical Server + SAN/NAS S/W Partitions Applications

51. The Cloud Perspective Absurd for companies in a non-technology business to: Spend large amounts of resources and manage their own IT infrastructure. Not Focus on your core business Leave IT Management to the experts hosting and managing software Access from Anywhere via Browser

52. Cloud – Why Now After the initial spurn, the world seems to have come around and accepted the notion of SaaS/Cloud Armed with economies of scale through multi-tenancy, virtualization Enter High Speed Internet Web 2.0 (Ajax, etc…)

53. Cloud – Why Now Massive Globalization Emergence of BRIC (Brazil, Russia, India and China) Business Pace increased Service Level Agreements (SLA’s) (99.9% Up)

54. Cloud - Distasters Floods (Iowa) Earth Quakes and Tsunami's (Japan) Tornado’s (Alabama) Locust (anywhere they want) Terrorists (9/11)

55. Example Cloud Solutions SaaS Edge Apps Email Google Apps Google Docs Several Thousand Available Sales Management Salesforce.com

56. Example Cloud Solutions Business critical applications: Financial Management - (Intacct) ERP – (AXIOM/RentalMan), (Netsuite) Human Capital Management - (SuccessFactors, Workday, Taleo), Product Lifecycle Management - (Arena Solutions) Identity Management (Symplified) Security (Symantec)

57. SaS 70 NOT SaaSStatement on Auditing Standards Number 70

58. SaS 70 Type I In a Type I report, the service auditor will express an opinion on whether the service organization's description of its controls presents fairly, in all material respects, the relevant aspects of the service organization's controls that had been placed in operation as of a specific date, and whether the controls were suitably designed to achieve specified control objectives. $50K – $60K

59. SaS 70 Type II In a Type II report, the service auditor will express an opinion on the same items in a Type I report, and whether the controls that were tested were operating with sufficient effectiveness to provide reasonable, but not absolute, assurance that the control objectives were achieved during the period specified. $100K+

60. Public Clouds A Virtual Private Cloud (VPC) is a private cloud existing within a shared or public cloud (i.e. the Intercloud).

61. Public Clouds

62. Private Clouds Variety of benefits Custom design and architecture is possible. You can control where your data is stored – on which server it is located. You can set parameters for which people can access which types of data. Secure access is possible through private connections.

63. Private Clouds May be forced to enter a long term contract typically from one to three years. Private cloud hosting also falls under the pay-per-use category only the amount of resources you consume are billed. During off peak hours on your web space or when you are still building traffic on a web site you only pay for resources you are consuming.

64. SaaS/Cloud SaaS/Cloud Pay As You Go Subscription (per user) Expense Item Month to Month Usage fees Lots of discussion re: Annual Fees Longer Term Commitment may mean Discounted Rate Concurrent vs. Named User Licenses Possible Setup Fee No Capitalized expenditure Web Browser

65. Pay As You Go means: The Vendor has to do a Quality Job Or You Fly Away CLTV Customer Lifetime Value

66. The SaaS Perspective Companies are concerning themselves with: Quick Deployment Service availability (SLA’s) Forgoing the IT nightmare No more software license No more upgrades No more maintenance No army of IT people No backups to do Optional Administration and Creation Capability All packaged into a single subscription fee paid on an as-used basis

67. CloudComputing Automatic upgrades Expand capacity and usage on demand Customization is Okay with many vendors What does this cost????? Approx: $1<$3 per day per user (A cup of coffee) Plus Setup

68. Comparison Chart

69. Wrap-Up

70. Larry Christensen Wynne Systems, Inc. InfoManager (949) 224-6314 lchristensen@wynnesystems.com www.infomanagerinc.com

71. Thank You! Remember: Evaluation Worksheets Let’s Connect via