Proformative presents A CFO's Perspective of Going with and Living SaaS. Special thanks Jim McGeever, COO, NetSuite Visit http://bit.ly/9p7Frq to download full presentation.

1. THE RESOURCE FOR CORPORATE FINANCE, ACCOUNTING & TREASURY PROFESSIONALS
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2. THE RESOURCE FOR CORPORATE FINANCE, ACCOUNTING & TREASURY PROFESSIONALS
A CFO’s Experience of Going
With and Living SaaS
Jim McGeever
COO, NetSuite

3. My Background
• Ernst & Young – Audit
• Photon Dynamics – Manufacturer of large
hi-tech capital devices
– IT reported to me
• Clontech – Manufacturer of biotech
research technologies
– IT reported to me
• NetSuite – 15th employee

4. Photon Dynamics IT Issues
• Server crashes
• Remote access
• Dashboards/reporting/search
• Backups/Security
• Lack of integration with other systems
• Pre Sox public company
• Version lock
• Lack of customization/flexibility
• My new best friend - VAR

5. Clontech IT Issues
• Server crashes
• Remote access
• Dashboards/reporting/search
• Backups/Security
• Lack of integration with other systems
• Pre Sox public company
• Version lock
• Lack of customization/flexibility
• My new best friend – VAR
• Y2K upgrade
• Performance

6. My SaaS life – 1.0
• Single database for all information – no time spent
reconciling data, arguing over the numbers
• No reporting packages – 100% Dashboards
• Fully integrated suite – no duplicate data entry
• No time spent worrying about
– Uptime – Version lock/upgrades & maintenance
– Security – Remote access, worldwide
– Backups – SAS 70 and compliance audits
• Much greater flexibility
– Point and click customization usually by users not IT staff

7. My SaaS life – 2.0
• Global expansion
– 9 Subsidiaries worldwide
• Local reporting, sales/use/VAT/consumption tax requirements
• Multi currency, consolidation, multi language
– Customers in 112 countries
• Shared services center
– All transactional finance functions consolidated offshore
– Added GL, FP&A, SOX and internal audit
– No assigned desks, paperless environment

8. Software Single-tenancy Software Multi-tenancy
Company 1 Company 2 Company 3 Company 1 Company 2 Company 3
Internet
Application Application Application
Application
Database Database Database
Database

9. Why Care About Multi-Tenancy?
Vendor Perspective Customer Benefit
Profitably Deliver Service Lower Pricing Maintained
See Patterns Across All to Gain Continuous
Enhance Solution Innovation
Deploy Solution Rapidly Quicker Time to Value
Deliver Upgrades Quickly Reduced Maintenance Cost

10. All “Clouds” Are Not Equal
Single Version Pre Multi Version Designed
CITRIX Browser
Tenant Locked Internet Tenant -less for Internet
FAKE CLOUD REAL CLOUD

11. The Move To The Cloud is Accelerating
3X
4X
Market Trends: Software as a Service, Worldwide, 2008-2013, Update
Forecast: Enterprise Software Markets, Worldwide, 2008-2013, 3Q09 Update

12. Top Drivers for Moving to the Cloud
Survey question: Why is your organization currently using or planning to use SaaS in the
next 12 months?
Considered More Cost-Effective From a TCO
61
Standpoint Than On-Premises Solution
Considered to Be Easier and/or Faster to
57
Deploy Than On-Premises Solution
Lack of IT Resources to Implement an
37
On-Premises Solution
Limited Capital Expense 34
Perceived Higher User Acceptance Than
30
On-Premises Solution
Best Alternative for New Regional Deployment 28
Temporary Solution to Solve a Temporary
18
Business Need
Others 4
0 10 20 30 40 50 60 70
Percent
N = 258

13. What the Cloud Means to You
• Ready-to-run
• Faster time-to-live
• Low start-up cost
• Pay-as-you-go
• Automated upgrades
• Anywhere access
• Easier audit/regulatory compliance

14. Consistently More Cost Effective, YoY
Up to
50%
Lower TCO

15. Cloud = World-Class Security & Compliance
• Application based security
• Third party scans and penetration tests
• 100% International Information Systems
Security Certification Consortium (ISC2)
CISSP-certified
• US Bureau of Industry and Security,
Department of Commerce Export
Encryption Compliant
• Payment Card Industry Data Security
Standard (PCI DSS)
• AICPA SAS-70 Type II Annual Report

16. Cloud Eases Regulatory Compliance
Area of Risk On-Premise Cloud
SDLC Major patch and upgrade procedures Confirm the results
and regression testing and migration to
production
Change Management Bug fix procedures, testing, etc. Confirm the results
Logical Security All layers-network, operating system, Proper segregation of duties and
database and application in addition to password policies
proper access , password policies
Physical Security Security measures for all component, fire Minimal
protection, etc
Network Security Security measures for all components, Minimal
firewall, DMZ
Data Backup & Restore All backups /restores of servers, data etc Minimal
System Availability and Incident reporting and loss of Minimal
Monitoring productivity due to downtime

17. Cloud Customization vs. On-Premise
1 It’s simpler – point & click
2 Customizations MIGRATE
3 It’s more powerful – PaaS
Ex: SuiteCloud Platform-as-a-Service
Custom
Custom Database Real-Time Programmable Application Programmable SuiteFlow
Dashboards Tables Integration User Interface Distribution Cloud Logic BPM

18. Integrated Process = Real Time Visibility

19. CFO Takeaways
Cloud Computing Gives You:
Better cash flow (opex vs. capex)
Lower financial risk
Greater financial visibility
Healthier return on investment
Run – Don’t Walk – to the Cloud

20. THE RESOURCE FOR CORPORATE FINANCE, ACCOUNTING & TREASURY PROFESSIONALS
Thank You