2. Agenda
• What is Cloud Computing
• Key Drivers for Cloud Solutions
• Benefits vs. Risks of Going to the Cloud
• Cloud Computing Trends
• How to Assess a Cloud Solution
3. IT Options
Application
SW
Compute Application
SW
Storage
Compute Cloud
Networking
Storage
& SaaS
Space, Power
Cooling Networking
"By 2012, more than 66%
On-Premise Co-location
of independent software
“DIY” vendors (ISVs) will offer
some of their applications
optionally or exclusively
as SaaS.”
4. On-Premise
• Software developed internally or purchased via a
perpetual license
• An up-front capital expense
• Software that runs entirely within the hardware
systems of its owner or licensee
• The consumer is responsible for the management
of the software installed
• Customers may be on many different releases of
the software
5. Co-Location
• Provisioning of computing services in a third-party
co-location center
• Software developed internally or purchased via a
perpetual license
• An up-front capital expense
• The consumer is responsible for the management
of the software installed
• Customers may be on many different releases of
the software
6. Cloud Computing
Cloud computing is Internet-based computing,
whereby shared resources, software, and
information are provided to computers and other
devices on demand, like the electricity grid.
Requires no end-user knowledge of the physical
location or configuration of the system that delivers
the service.
―Source: Wikipedia
7. Cloud Deployment Models
• Community Cloud – Shares infrastructure between several organizations
from a specific community with common concerns (e.g., security,
compliance, jurisdiction), whether managed internally or by a third-party and
hosted internally or externally.
• Public Cloud – The cloud infrastructure is provisioned by the cloud
provider for open use by the general public. It may be owned, managed,
and operated by a business, academic, or government organization, or
some combination of them.
• Private Cloud – Infrastructure provisioned solely for a single organization,
whether managed internally or by a third-party and hosted internally or
externally.
• Hybrid Cloud – A composition of two or more clouds (private, community,
or public) that remain unique entities but are bound together, offering the
benefits of multiple deployment models. It can also be defined as multiple
cloud systems that are connected in a way that allows programs and data
to be moved easily from one deployment system to another.
8. Cloud Service Models
• Software as a Service (SaaS) – Employs the provider’s applications running
on a cloud infrastructure. The applications are accessible from various client
devices through either a thin client interface, such as a web browser (e.g.,
web-based email), or a program interface. The provider manages or controls
the underlying cloud infrastructure with the possible exception of limited user-
specific application configuration settings.
• Platform as a Service (PaaS) – Consumer-created or acquired applications
supported by the provider are deployed onto the cloud infrastructure which the
provider manages or controls. The consumer has control over the deployed
applications and possible configuration settings for the application-hosting
environment.
• Infrastructure as a Service (IaaS) – The consumer provisions processing,
storage, networks, and other fundamental computing resources where the
consumer is able to deploy and run arbitrary software, which can include
operating systems and applications. The provider manages or controls the
underlying cloud infrastructure while the consumer has control over operating
systems, storage, and deployed applications; and possible limited control of
select networking components (e.g., host firewalls).
12. On-Premise Holds the Business Back
Typical IT Budget Allocation
9% Innovation
Current
66%
on old
91% versions
12
Maintenance
Source: ERP in SME, Aug 2010
13. Version Locked Business Management Software
is a Liability in a Sea of Change
Changing Greater need
financial for business
reporting visibility
Local sales
Shrinking IT tax changes
resources
Increasingly
Launching distributed
new subs and business
geos
New business More selling
models channels
14. What Businesses Are Looking for in Their
Next ERP
Improve
Need a system
business
with better
visibility
scalability
9%
7% Reduce overall
Require more
IT maintenance
sophisticated
costs
functionality
23%
12%
Better support a
Need to distributed
Streamline cross organization
functional 17%
business
processes
32%
N=809
15. Productivity Benefits Cited as Key Drivers for
Cloud ERP
Speed of
deployment
3%
Streamlined Lower cost of
business ownership
processes 14%
31%
Access data
from anywhere
at anytime
Lower upfront 38%
expenditure
4%
Instant access to
N=805 new functionality
10%
17. Cloud Enables the Distributed Organization
Todays organizations are increasingly distributed
Ideal for inherently distributed activities:
– Financial Planning
– Selling and Order Taking
– Distributed finance team
Facilitates off-shoring / shared services
Easily supports temporary and home workers
Real time view into centralized data
#1 Benefit of Cloud Computing
Reported by Finance Executives
18. Keys to Cloud ERP Success:
ERP that Improves Organizational Efficiency
Trait Business Benefit
Quote to cash integration Reduce cycle time and overhead
Procure to pay integration Eliminate spreadsheets
Web based T&E management Improve employee productivity
Comprehensive audit trail Reduce audit times and improve
compliance
Self service Reduce time spent “hunting”
dashboards & reporting Collaboration and “actionable
One view of the customer Improve team collaboration,
reduce redundancy
19. Keys to Cloud ERP Success:
ERP that Supports Growth
Trait Business Benefit
Support multi-sub and COAs Manage consolidation times as
business grows
Country specific tax and accounting Eliminate need to add ERP to
regulations support local needs
Automated sales tax management Calculate sales taxes across
channels and geos
Drill down from corporate Ensure straight line visibility from
to subsidiaries HQ to geos
Multi-language management Ensure you can localize solution to
geo needs
20. Keys to Cloud ERP Success:
ERP that Supports Business Flexibility
Trait Business Benefit
Comprehensive Integrate with suppliers, channels,
web services integration and services
Graphical workflow management Empower line of business to
automate business process
Managed customization layer Ensure that customizations
will not “version lock” application
Mobile and anywhere access Support the distributed organization
Industry functionality “Future proof” application
and ecosystem
21. Software as a Service
Ideal for the Downturn/Upturn
Low Cost Rapid Deployment Transparency
Subscription-based Deploys in Weeks Pricing, Uptime, Training,
Pricing Option to Self-Implement Support and Trials All
Eliminates IT Costs Online
Ease Of Use Accountability Innovation
24x7 Web-based Access Renewal-Based Model More Frequent Product
Browser-based Interface High Customer Satisfaction Releases, Automatic
Upgrades
22. Challenges and Opportunities
• Compliance/Governance
• Availability
and Reliability
• Performance
• Security/Data Privacy
• Cloud Lock In
• Software Licensing
23. Today’s Regulatory Environment
And it just keeps coming!!!
SOX (Sarbanes Oxley) – IT General
Controls
HIPAA (Health Insurance Portability and
Accountability Act) – Data Security
Graham-Leach-Bliley Act – Financial
Privacy Rule
S&P (Standard & Poor’s) – Risk
Assessment
PCI (Payment Card Industry) – Data
Security Standards
IFRS (International Financial Reporting
Standards) – Updated reporting standards
Etc, Etc, Etc!!!!!
24. SAS 70 / SSAE 16 Reports
• Report issued by a CPA firm that
attests to the internal controls
implemented at the service provider and their
operating effectiveness
• The cost is incurred by the service provider
• Provides reasonable assurance that the required
IT General Controls required for compliance are
met
25. Applications: Pros
• Cost Savings
– Lowers the upfront cost
to buy the application
• Lowers upfront implementation costs and time to deploy
• Less complex processes
• Monthly licenses fees
• Savings on software maintenance costs
– SaaS pricing models provide great flexibility
• Easy to start small and grow with your needs
26. Applications: Cons
• Cost Increases
– Doesn’t lower overall cost of ownership
• Additional cost to integrate onsite applications
• Additional training for mandatory upgrades – one code base
– SaaS pricing models based on users/transactions
• For larger entities, pricing model may not provide
required bandwidth
– Reporting across SaaS and on premise data sources
can require additional reporting tools and data sets
27. Infrastructure: Pros
• Cost Savings
– Reduces upfront cost to
purchase hardware
– The management, support, and upgrading
of the software and the infrastructure that supports
it is the responsibility of the solution provider
– Employs highly sophisticated security technology and
spreads the cost over all customers
28. Infrastructure: Cons
• Cost Increases
– Loss of productivity due to:
• Internet going down without notice
• Solution provider outages
– Difficulty in integrating to applications and data sources
that are on premise due to:
• Mandatory upgrades
• Lack of integration tools
29. Additional Advantages
• Secure data access through Web Access –
anytime, anywhere without the IT hassle
• Great for Collaboration-internal & external
• One code base means fewer bugs
• Ability to standardize processes
• Built-in backup for your applications and
infrastructure
• Can be part of your disaster recovery plan
30. Additional Disadvantages
• Many SaaS applications offer fewer built-in
features than comparable non-SaaS applications
• Building and maintaining interfaces to other
applications can be costly
• Mandatory upgrades
• Loss of unique processes or data requirements
• 100% dependent on the Internet
• Speed and response time dependent on Internet
31. Important to Note
• Most of the solutions are geared towards
small/medium entities but moving upstream
• Share common processes with multiple entities
• 100% reliant on the internet; have a backup
pipe/plan
• PC must be sufficiently equipped
• Good implementation is required for good results
– DON’T skimp on professional services and support
33. Purpose and Methodology
Survey Sample Survey Method
Field Work Dec. 20, 2011 – Collection Online Questionnaire
Jan. 12, 2012
Number of 53 (incl.
Total 1,682 Questions demographics)
Respondents
Margin of Error +/- 2.19%
Audience Base CIO, Computerworld,
CSO, Network World,
InfoWorld and
ITworld sites
Survey Goal
To measure cloud computing trends among
technology decision-makers including usage and
plans across various cloud service and
deployment models, investments, business drivers
and impact on business strategy and plans.
34. Private Cloud Most Readily Adopted Rapid
Growth Expected to Continue
Q. Approximately, how much of your organization’s data presently resides in the
public, private and hybrid clouds, and will in 18 months?
35. Long-Term Outlook Shows One Quarter Will
Have Majority of IT Ops in the Cloud
Q. Which of the following best describes your long-term expectations for cloud
computing at your organization over the next 5 years?
36. Long-Term Savings Anticipated but
Calculating a Challenge
Q. Please rate your level of agreement with the following statements.
37. Hurdles for Cloud Computing: Security, Access
and Governance
Q. What are the top three challenges or barriers to implementing a cloud
computing strategy at your organization?
38. How to Assess SaaS Providers
1. True Multi-Tenancy
2. Regularly Delivered, Vendor-Managed Updates
3. Seamless Integration on Demand
4. Business Driven Configurability
5. World-Class Data Center and Security
6. High-Performance Sustainable IT Infrastructure
7. Predictable Total Cost of Ownership (“TCO”)
8. Faster Deployment
9. Complete Control of Data
10. Liberation from Non-Strategic IT Issues
39. How to Assess SaaS Providers
• Require a SAS70/Type II or
SSAE16 SOC1/Type 2 report
• Try before you buy – it’s in the cloud!