Considerations for Moving Your Enterprise Mission Critical Applications to the Cloud

1Copyright © 2013. Infor. All Rights Reserved. www.infor.comCopyright © 2013. Infor. All Rights Reserved. www.infor.com 1
Is Cloud Deployment For You?
Four Ways to Evaluate
Brian Rose
SVP, Infor Labs

2Copyright © 2013. Infor. All Rights Reserved. www.infor.com
Is Cloud Deployment For You? Four Ways to Evaluate
Today’s session
• Introductions
• State of the Cloud
• Cost Factors
• Time to Value
• Globalization and Business Effectiveness
• Security and Reliability
• Q&A

• Introductions
• Cost Factors
• Time to Value
• Q&A

Cloud Environment
"The cloud will completely disrupt the ERP market.
The world is moving to the cloud, and it will be the
most important factor in the development of ERP
over the next 10 years or more.”
- Nigel Rayner, Gartner, (in ZDNet, “How the Cloud is Going to Reinvent ERP – and How Long It Will Take,” Aug
2013)

Cloud Market Trends
Survey Results:
• 47% plan to move their ERP
to the cloud in the next 5
years
• 26% plan to move in the
next 3 years
• 30% will keep majority of
ERP on premise

The analysts say..
23 50%
1/5
109%
23% to 50% increasing willingness to consider
SaaS ERP **
The cloud software model will account for $1 of
every $5 spent on software *
Spend on Cloud ERP will more than double
(increase by 109%) **** by 2016
** 2009-2012
*** 2012-2017

The Cloud Revolution: 4 Drivers

• Introductions
• Cost Factors
• Time to Value
• Q&A

Total Cost of Ownership
Infrastructure

On-Premise Cloud-Deployed
Costs: On-Premise vs. Cloud
Upfront costs: Large investment required…….…….vs.
How financed: Capital expense………………..…….vs.
Variability: Varies by factors such as number
of updates needed, revenue, etc…....vs.
Minimal upfront costs.
Operating expense
More predictable – and you always have
latest version

Predictability
“Organizations with Cloud/SaaS ERP spent exactly
100% of their ERP implementation budget on
implementation, compared to organizations with
on-premise ERP that went 12% over budget.”
- Aberdeen Group, “Is Cloud ERP Right for You?” September 2012

Infrastructure Cost Example

Direct Infrastructure Operational & Migration costs
Cloud Value - Gathering Cost Information
• Servers
• Storage
• Backup hardware and software license
and maintenance
• Security hardware and software
license and maintenance
• Database maintenance cost
• OS maintenance cost
• Real Estate
• Power and Cooling
• Patching
• Customizations
• Test environments
• Labor/People costs
• Database Administrators
• Slices of management time
• Ongoing major version updates every
few years
• Initial implementation
• Training
• Disaster Recovery/HA

TCO Improvements
0%
5%
10%
15%
20%
25%
30%
35%
40%
Decrease in time it
takes to make
decisions
Decrease in cycle
time of key processes
Improvements in
complete, on-time
delivery
Improvements in
profit margins
Cloud
On-premise
36
16
24 25
17
21
18
7
3X the
improvement
in profit margins
Source: Aberdeen Group, “The Benefits of Cloud ERP: It’s About Transforming Your Business

Managed Infrastructure
Resource
Constraints
Key Requirements
• Simplified IT infrastructure management
• Worry free upgrades
• Clearly defined roles and responsibilities
• Transparent, predictable pricing
• Select World Class Provider
Focus on InnovationDo More with Less/Same

• Introductions
• Cost Factors
• Time to Value
• Q&A

ERP SaaS Growth
2012
2013
Forrester Research, May 2014
12%
24%
2012
2013
41%
65% of enterprises
expect to be using
SaaS in some ERP role
before the end of 2015
Two-thirds increase
on what respondents
were saying a year ago
Planning to use SaaS
alongside on-premise
Replaced or plan to replace
existing ERP with SaaS
Double growth in
planned SaaS ERP
50% growth in SaaS
alongside ERP

Time to Value: Cloud vs. On-Premise
0
5
10
15
20
25
30
Average Months 'til first go live Average Months 'til ROI/Payback
Cloud
On-Premise
Sources: IDC, “The Business Value of Amazon Web Services Accelerates Over time”; Panorama Consultants “How Much
Can you Afford to Lose with Your ERP Implementation?” and Aberdeen “Is Cloud ERP Right for You?”
6.95 7.1
27
11.02

Complete
solution -
Industry
suites in the
cloud
Last mile -
industry
features and
content are
pre-built
One unified
solution from
one provider
Global
application
and
infrastructure
Proven
industry
specific best
practices
Speed to
deployment
Continuous
innovation
and upgrades
Modern
technologies,
social
computing, BI
Time to Value: Considerations

Time to Value – Complete Solutions
One Example
Automotive supplier business process model
Strategy and vision
Core functions
Support functions
Sourcing &
procurement
Production
management
Product
development
Materials
management
Automotive order
management
Planning and
scheduling
Customer
relationship
management
Enterprise strategy Organization management
Quality
management
Technology
Financial
management
Human capital
management
Enterprise asset
management

Time to Value – Micro-Vertical Focus
Examples

Automatic Upgrades New Technologies
Easy Access to New Technology
Constant
Change
Key Requirements
• Maximize the value of existing systems
• Simplified integration to existing
systems
.
Pre-built Integrations to technology like mobility, big data, social business

• Introductions
• Cost Factors
• Time to Value
• Q&A

Global Expansion Agility
Terms
Key Requirements:
• Scalable processing optimizes capacity costs
• Global cloud network managed infrastructure
• Pre-built integrations simplifies tech adoption
Divestitures
Mergers
and
Acquisitions
Joint
Ventures
New
Markets
Offshoring/
Near
Shoring
New
Locations

Cloud Globalization Trends

• Introductions
• Cost Factors
• Time to Value
• Q&A

Security and Reliability: Cloud vs. on-
premise
“(Cloud) end users benefited from fewer
service disruptions and quicker recovery,
reducing downtime by 72% and savings
nearly $32,600 per application per year.”
- Randy Perry, IDC (in “The Business Value of Amazon Web Services Accelerates Over time” December 2013)

Security
Best Practice Security
Key Requirements:
• Security policy that focuses
on the ISO 27001 standard
• Encryption using
mechanisms like TLS/SSL,
PGP and secure FTP
• Server authentication
through digital certificates
• Industry Compliance
Application
Security
Network
Security
Physical
Security
Operations
Security
Monitoring

Emphasis on security
Information Security Office
• Chief Information Security Office – Jim Hoover, CISSP, CISM, CEH, ITILf
• New compliance focus on industry, U.S. and international standards
• Alignment to best practices for security governance
• Significant investment in security controls
• Independent 3rd party assessments to provide unbiased security posture review
• Alignment to best practices and complimentary controls
• Standardization of secure development practices

Security and compliance
ISO 27001

Redundancy, Replication, Recovery Reliability
Terms
Key Requirements:
• Thorough redundancy of power, and
equipment
• Data backed up to off-site data centers
• 99.5% guaranteed server availability,
24/7/365; 99.9% historically
• SLA’s for application uptime, disaster
recovery, response time to incidents
Redundancy Replication Recovery
+ +

Cloud Architecture Requirements
Multi-tenancy Scalability High availability
Open integrations Stateless applications Supports auto-scaling
Zero footprint client Automated Upgrades No local server
dependency
No security code
scanner findings
Successful penetration test Supports health check
monitors
Automated patching Single instance deployment No source code changes

Next Steps
• Evaluate costs of move to cloud: launch, operations and infrastructure.
• Consider time to value elements: implementation timeline, payback/ROI.
• Factor in the business effectiveness improvements and your global needs.
• Compare existing data management security and reliability measures with
potential vendor capabilities.

Considerations for Moving Your Enterprise Mission Critical Applications to the Cloud

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