Calculating TCO for Cloud based Applications

Calcula&ng  TCO  for  Cloud-­‐based  Applica&ons Evaluating Options and Total Cost for Spend Optimization Automation PayStream Advisors August  22  2012    Henry  Ijams    PayStream  Advisors      

Henry Ijams Managing Director PayStream Advisors, Inc.

Tony Wessels V.P. Marketing Coupa

Twi8er  Hashtag  

#TCOcloud

Coupa’s  Mission  

Delivering software innovation that breeds responsible spending while

impacting the company bottom line.

Coupa’s  Explosive  Growth  

180%  Bookings  

YOY  

+95%  Renewal  Rate  

YOY  

150%  PlaMorm  Usage  

YOY  

One  World,  One  PlaMorm  

10  Languages  

40  Countries  100,000  Users  

Customers  Highlights  

Retail Finance Mfg. Health Care High Tech

PayStream  Advisors  Agenda  

•  Cost  efficiencies  from  the  cloud  •  Four  Steps  to  determine  the  real  solu6on  cost  

•  TCO  Case  Study    

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PayStream’s  unbiased  approach  gave  us  renewed  con8idence  in  our  ability  to  foster  meaningful  change.  We  accomplished  more  in  4  weeks  than  we  had  in  the  prior  four  years.    -­‐    Myles  Kelly,  Partner          Edward  Jones  SecuriIes  

“ “

About  PayStream  Advisors  PayStream  Advisors  is  a  provider  of  independent  research  and  automaIon  assessments  for  financial  automaIon  technology  to  business  leaders  in  finance  and  procurement.  

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Advisory  Services  

PayStream’s  Annual  Procure  to  Pay  Summit      September  17-­‐19,  2012  CharloQe  NC  18  Workshops  3  Learning  Labs  3  Days  of  Networking  100%  fun!  

PayStream  Research  

What  Are  We  Talking  About?  

•  Even though Cloud Computing is not a new term, some are confused about exactly what it is and how to apply it.

•  This session is focused on the cost benefits of the cloud.

ApplicaIon  runs  on-­‐premises  

 Buy  my  own  hardware,  and  manage  my  own  

data  center  

ApplicaIon  runs  at  a  hoster  

Co-­‐locaIon  or    

Managed  servers  

ApplicaIon  runs  using  

cloud  services    

“cloud  fabric”  (elasIc,  

infini-­‐scale)  

From  On-­‐Premise  to  Cloud  Plaborms  

Deployment  OpIons  for  Procurement  Apps  

You  Manage:  You  Manage:  � ApplicaIon  � RunIme  �  IntegraIon  � Database  � Server  Hardware/Sofware  � Storage    � Network  

You  Manage:  �  ApplicaIon  �  RunIme  �  IntegraIon  �  Database  

Vendor  Manages:  �  Server  Hardware/

Sofware  �  Storage    �  Network  �  MulIple  codelines  

(separate  for  each  customer)  

Hosted       Cloud      On-­‐Premise      Vendor  Manages:  �  ApplicaIon  �  RunIme  �  IntegraIon  �  Database  �  Server  Hardware/

Sofware  �  Storage    �  Network  �  Single  codelines  

Cloud  Spend  Op&miza&on:  A  Smarter  Way  To  Spend  PayStream’s  research  findings  reveal  that  the  benefits  of  cloud  Spend  Op&miza&on  solu&ons  extend  well  beyond  the  cost  of  technology  acquisi&on,  including:  

•  Providing  lower  transacIon  processing  costs  /fast  cycle  Imes.  

•  Increasing  compliance  with  negoIated  contracts  and  purchasing  policies.  

•  Providing  greater  transparency  into  how  the  organizaIon  spends  money.  

•  Ability  to  consolidate  spend  across  the  organizaIon.  

•  Ability  to  view  spend  as  it  happens  and  compare  it  against  budgets.  

•  ConInuous  system  upgrades.  

What  are  the  cost  drivers  for    Procurement  AutomaIon?  Cost  Driver   On-­‐Premise   Cloud  

Sofware   1x  Licensing  Cost   Annual  SubscripIon  

Hardware  &  Infrastructure   Servers  &  Databases   No  fees  

ConfiguraIon/ImplementaIon   Professional  Services   Set-­‐up  fees  

Data  MigraIon   Extensive   Minimal  

User  Training   Required   Lower  Cost  –  Ease  of  Use  

Annual  Maintenance   19  –  20%  of  Sofware   None  

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Sof  Costs  +  Gotchas      

•  Project  Management  –  Costs  of  engaging  with  IT  &  Management  Approval  Process  –  Takes  Ime  away  from  more  strategic  tasks  

•  The  cost  of  delaying  the  savings  – Most  projects  never  get  started  –  Thus,  savings  are  delayed  or  never  begin  

•  Complex  Requirements  –  Custom  forms,  custom  fields,  custom  business  rules,  mulIple  chart  of  accounts  and  integraIons  

–  Special  features  can  double  or  triple  the  cost  of  a  project  

PayStream  Advisors  Agenda  

•  Cost  efficiencies  from  the  cloud  •  Four  Steps  to  your  TCO  •  TCO  Case  Study      

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Four  Steps  to  Calculate  Your  TCO  

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1.   Func&onal  Evalua&on  and  Selec&on  Evaluate  the  features  and  funcIonality  of  compeIIve  products    

2.   Determine  your  Ini&al/Upfront  Cost  What  are  the  costs  elements  of  your  opIons?  

3.   Establish  Annual/Recurring  Costs  How  much  are  the  ongoing  costs  of    the  soluIon?    

4.   Enter  data  into  PayStream  TCO  Tool/Compare  the  Op&ons  Results  analysis  automaIcally  populated  based  on  your  actual  figures    

PayStream’s  TCO  model  makes  it  east  to  determine  which  solu&on  –  Cloud  vs.  On-­‐Premise/Network  is  more  cost  effec&ve  for  your  company.  

One  Time  Costs  –  PayStream  TCO  Model  

19  

Cost Categories Year 1 Year 2 Year 3 Cloud Traditional and

Network Cloud Traditional

and Network

Cloud Traditional and

Network

One Time Costs Software & Hardware

Software License $137,500 Software Upgrades $15,000

Hardware & Infrastructure $35,000 Software & Hardware $0 $172,500 $0 $15,000 $0 $0

Typical Configuration & Implementation: Data migration $0 $75,000

Services Procurement $0 $60,000 Catalogs $0 $22,500

Punch-outs $0 $15,000 $0 $15,000 $0 $15,000 Professional services $0 $175,000

Program management (vendor) $0 $150,000 Training $0 $90,000

Typical Configuration & Implementation: $0 $622,500 $0 $15,000 $0 $15,000 Additional Complex Environments Set Up:

Multiple charts of accounts $0 $0 $0 $60,000 $0 $60,000 Other integrations e.g. HR, Budget $0 $10,000

Custom forms $0 $4,000 $4,000 $4,000 Custom fields $0 $0 $2,000 $2,000

Custom approval rules $0 $3,500 $3,500 $3,500 Additional Set Up $0 $17,500 $0 $69,500 $0 $69,500

Total One Time Costs $0 $812,500 $0 $99,500 $0 $84,500

One  Time  Costs  –  PayStream  TCO  Model  

20  

Cost Categories Year 1 Year 2 Year 3 Cloud Traditional and

Network Cloud Traditional

and Network

Cloud Traditional and

Network

One Time Costs Software & Hardware

Software License $137,500 Software Upgrades $15,000

Hardware & Infrastructure $35,000 Software & Hardware $0 $172,500 $0 $15,000 $0 $0

Configuration & Implementation: Data migration $0 $75,000

Services Procurement $0 $60,000 Catalogs $0 $22,500

Punch-outs $0 $15,000 $0 $15,000 $0 $15,000 Professional services $0 $175,000

Program management (vendor) $0 $150,000 Training $0 $90,000

Configuration & Implementation: $0 $622,500 $0 $15,000 $0 $15,000 Additional Complex Environments Set Up:

Multiple charts of accounts $0 $0 $0 $60,000 $0 $60,000 Other integrations e.g. HR, Budget $0 $10,000

Custom forms $0 $4,000 $4,000 $4,000 Custom fields $0 $0 $2,000 $2,000

Custom approval rules $0 $3,500 $3,500 $3,500 Additional Set Up $0 $17,500 $0 $69,500 $0 $69,500

Total One Time Costs $0 $812,500 $0 $99,500 $0 $84,500

One  Time  Costs  –  PayStream  TCO  Model  

21  

Cost Categories Year 1 Year 2 Year 3 Cloud Traditional and

Network Cloud Traditional

and Network

Cloud Traditional and

Network

One Time Costs Software & Hardware

Software License $137,500 Software Upgrades $15,000

Hardware & Infrastructure $35,000 Software & Hardware $0 $172,500 $0 $15,000 $0 $0

Configuration & Implementation: Data migration $0 $75,000

Services Procurement $0 $60,000 Catalogs $0 $22,500

Punch-outs $0 $15,000 $0 $15,000 $0 $15,000 Professional services $0 $175,000

Program management (vendor) $0 $150,000 Training $0 $90,000

Configuration & Implementation: $0 $622,500 $0 $15,000 $0 $15,000 Additional Complex Environments Set Up:

Multiple charts of accounts $0 $0 $0 $60,000 $0 $60,000 Other integrations e.g. HR, Budget $0 $10,000

Custom forms $0 $4,000 $4,000 $4,000 Custom fields $0 $0 $2,000 $2,000

Custom approval rules $0 $3,500 $3,500 $3,500 Additional Set Up $0 $17,500 $0 $69,500 $0 $69,500

Total One Time Costs $0 $812,500 $0 $99,500 $0 $84,500

One  Time  Costs  –  PayStream  TCO  Model  

22  

Cost Categories Year 1 Year 2 Year 3 Cloud Traditional and

Network Cloud Traditional

and Network

Cloud Traditional and

Network

One Time Costs Software & Hardware

Software License $137,500 Software Upgrades $15,000

Hardware & Infrastructure $35,000 Software & Hardware $0 $172,500 $0 $15,000 $0 $0

Configuration & Implementation: Data migration $0 $75,000

Services Procurement $0 $60,000 Catalogs $0 $22,500

Punch-outs $0 $15,000 $0 $15,000 $0 $15,000 Professional services $0 $175,000

Program management (vendor) $0 $150,000 Training $0 $90,000

Typical Configuration & Implementation: $0 $622,500 $0 $15,000 $0 $15,000 Additional Complex Environments Set Up:

Multiple charts of accounts $0 $0 $0 $60,000 $0 $60,000 Other integrations e.g. HR, Budget $0 $10,000

Custom forms $0 $4,000 $4,000 $4,000 Custom fields $0 $0 $2,000 $2,000

Custom approval rules $0 $3,500 $3,500 $3,500 Additional Set Up $0 $17,500 $0 $69,500 $0 $69,500

Total One Time Costs $0 $812,500 $0 $99,500 $0 $84,500

Cost Categories Year 1 Year 2 Year 3 Cloud Traditional

and Network Cloud Traditional

and Network

Cloud Traditional and

Network Annual Costs

Maintenance / Hosting / Subscription Hardware / infrastructure maintenance $5,000 $5,000

Software maintenance $27,500 $27,500 Application Support $50,000 $50,000 $50,000

Procure to Pay subscription $650,000 $300,000 $650,000 $300,000 $650,000 $300,000 Req to PO subscription

Expense management subscription Contracts module subscription $0 $50,000 $0 $50,000 $0 $50,000 Payables module subscription

Spend analysis subscription $0 Transaction fees $0 $400,000 $0 $400,000 $0 $400,000

Hosting fees Maintenance / Hosting / Subscription $650,000 $800,000 $650,000 $832,500 $650,000 $832,500

Services & Fees: Supplier enablement $0 $50,000 $0 $50,000 $0 $50,000

Supplier fees $0 $1,200,000 $2,000,000 $2,400,000 Services & Fees $0 $1,250,000 $0 $2,050,000 $0 $2,450,000

Total Annual Costs $650,000 $2,050,000 $650,000 $2,882,500 $650,000 $3,282,500 Opportunity Costs

Savings lost from continued maverick spend $0 $1,250,000 $0 $937,500 $703,125 Savings Lost $0 $1,250,000 $0 $937,500 $0 $703,125

Total Costs $650,000 $4,112,500 $650,000 $3,919,500 $650,000 $4,070,125

Annual  Costs  

23  

Cost Categories Year 1 Year 2 Year 3 Cloud Traditional

and Network Cloud Traditional

and Network

Cloud Traditional and

Network Annual Costs

Maintenance / Hosting / Subscription Hardware / infrastructure maintenance $5,000 $5,000

Software maintenance $27,500 $27,500 Application Support $50,000 $50,000 $50,000

Procure to Pay subscription $650,000 $300,000 $650,000 $300,000 $650,000 $300,000 Req to PO subscription

Expense management subscription Contracts module subscription $0 $50,000 $0 $50,000 $0 $50,000 Payables module subscription

Spend analysis subscription $0 Transaction fees $0 $400,000 $0 $400,000 $0 $400,000

Hosting fees Maintenance / Hosting / Subscription $650,000 $800,000 $650,000 $832,500 $650,000 $832,500

Services & Fees: Supplier enablement $0 $50,000 $0 $50,000 $0 $50,000

Supplier fees $0 $1,200,000 $2,000,000 $2,400,000 Services & Fees $0 $1,250,000 $0 $2,050,000 $0 $2,450,000

Total Annual Costs $650,000 $2,050,000 $650,000 $2,882,500 $650,000 $3,282,500 Opportunity Costs

Savings lost from continued maverick spend $0 $1,250,000 $0 $937,500 $703,125 Savings Lost $0 $1,250,000 $0 $937,500 $0 $703,125

Total Costs $650,000 $4,112,500 $650,000 $3,919,500 $650,000 $4,070,125

Annual  Costs  

24  

PayStream  Advisors  Agenda  

•  Cost  efficiencies  from  the  cloud  •  Three  Simple  Tricks  to  Develop  your  TCO  •  TCO  Case  Study      

25  

Client  Case  Study  –  Fortune  1000  Manufacturer  •  $2  Billion  Manufacturer  of  Energy  Related  

Materials  •  Decentralized  purchasing  

–  Plant  managers  control  material  –  Services  procurement  (45%  of  spend)  black  hole  

•  ParIally  Centralized  AP  with  Imaging  –  1,200,000  annual  invoices  –  Invoices  sent  directly  to  plants/regional  offices  –  Limited  EDI/Electronic  Invoices  

•  Issues/Pains  –  Lots  of  paper/long  PO  approval  cycle  –  No  visibility  to  non-­‐PO  purchases  due  to    –  Poor  visibility  to  who’s  buying  what  –  Late  payments/Missed  discounts  –  Too  much  manual  effort  

Manager’s  dilemma:    Q.  How  much  should  we  invest  in  finance  opera6ons  to  automate  Purchase  to  Pay?      Q.  Will  our  investment  be  made  worthless  by  newer  technology?    Q.  What  is  the  best  approach  to  solve  our  problems?  

PayStream  populated  it’s  tool  with  actual  cost  informaIon  from  a    manufacturing  client.  

Spend  Op&miza&on  TCO  Analysis:    Case  Study  of  Fortune  1,000  Manufacturer  

Cost Categories Year 1 Year 2 Year 3 Cloud Traditional and

Network Cloud Traditional

and Network

Cloud Traditional and

Network

One Time Costs Software & Hardware

Software License $137,500 Software Upgrades $15,000

Hardware & Infrastructure $35,000 Software & Hardware $0 $172,500 $0 $15,000 $0 $0

Typical Configuration & Implementation: Data migration $0 $75,000

Services Procurement $0 $60,000 Catalogs $0 $22,500

Punch-outs $0 $15,000 $0 $15,000 $0 $15,000 Professional services $0 $175,000

Program management (vendor) $0 $150,000 Training $0 $90,000

Typical Configuration & Implementation: $0 $622,500 $0 $15,000 $0 $15,000 Additional Complex Environments Set Up:

Multiple charts of accounts $0 $0 $0 $60,000 $0 $60,000 Other integrations e.g. HR, Budget $0 $10,000

Custom forms $0 $4,000 $4,000 $4,000 Custom fields $0 $0 $2,000 $2,000

Custom approval rules $0 $3,500 $3,500 $3,500 Additional Set Up $0 $17,500 $0 $69,500 $0 $69,500

Total One Time Costs $0 $812,500 $0 $99,500 $0 $84,500

One  Time  Costs  –  PayStream  TCO  Model  

28  

Cost Categories Year 1 Year 2 Year 3 Cloud Traditional and

Network Cloud Traditional

and Network

Cloud Traditional and

Network

One Time Costs Software & Hardware

Software License $137,500 Software Upgrades $15,000

Hardware & Infrastructure $35,000 Software & Hardware $0 $172,500 $0 $15,000 $0 $0

Typical Configuration & Implementation: Data migration $0 $75,000

Services Procurement $0 $60,000 Catalogs $0 $22,500

Punch-outs $0 $15,000 $0 $15,000 $0 $15,000 Professional services $0 $175,000

Program management (vendor) $0 $150,000 Training $0 $90,000

Typical Configuration & Implementation: $0 $622,500 $0 $15,000 $0 $15,000 Additional Complex Environments Set Up:

Multiple charts of accounts $0 $0 $0 $60,000 $0 $60,000 Other integrations e.g. HR, Budget $0 $10,000

Custom forms $0 $4,000 $4,000 $4,000 Custom fields $0 $0 $2,000 $2,000

Custom approval rules $0 $3,500 $3,500 $3,500 Additional Set Up $0 $17,500 $0 $69,500 $0 $69,500

Total One Time Costs $0 $812,500 $0 $99,500 $0 $84,500

One  Time  Costs  –  PayStream  TCO  Model  

29  

Cost Categories Year 1 Year 2 Year 3 Cloud Traditional and

Network Cloud Traditional

and Network

Cloud Traditional and

Network

One Time Costs Software & Hardware

Software License $137,500 Software Upgrades $15,000

Hardware & Infrastructure $35,000 Software & Hardware $0 $172,500 $0 $15,000 $0 $0

Configuration & Implementation: Data migration $0 $75,000

Services Procurement $0 $60,000 Catalogs $0 $22,500

Punch-outs $0 $15,000 $0 $15,000 $0 $15,000 Professional services $0 $175,000

Program management (vendor) $0 $150,000 Training $0 $90,000

Configuration & Implementation: $0 $622,500 $0 $15,000 $0 $15,000 Additional Complex Environments Set Up:

Multiple charts of accounts $0 $0 $0 $60,000 $0 $60,000 Other integrations e.g. HR, Budget $0 $10,000

Custom forms $0 $4,000 $4,000 $4,000 Custom fields $0 $0 $2,000 $2,000

Custom approval rules $0 $3,500 $3,500 $3,500 Additional Set Up $0 $17,500 $0 $69,500 $0 $69,500

Total One Time Costs $0 $812,500 $0 $99,500 $0 $84,500

One  Time  Costs  –  PayStream  TCO  Model  

30  

Cost Categories Year 1 Year 2 Year 3 Cloud Traditional and

Network Cloud Traditional

and Network

Cloud Traditional and

Network

One Time Costs Software & Hardware

Software License $137,500 Software Upgrades $15,000

Hardware & Infrastructure $35,000 Software & Hardware $0 $172,500 $0 $15,000 $0 $0

Configuration & Implementation: Data migration $0 $75,000

Services Procurement $0 $60,000 Catalogs $0 $22,500

Punch-outs $0 $15,000 $0 $15,000 $0 $15,000 Professional services $0 $175,000

Program management (vendor) $0 $150,000 Training $0 $90,000

Typical Configuration & Implementation: $0 $622,500 $0 $15,000 $0 $15,000 Additional Complex Environments Set Up:

Multiple charts of accounts $0 $0 $0 $60,000 $0 $60,000 Other integrations e.g. HR, Budget $0 $10,000

Custom forms $0 $4,000 $4,000 $4,000 Custom fields $0 $0 $2,000 $2,000

Custom approval rules $0 $3,500 $3,500 $3,500 Additional Set Up $0 $17,500 $0 $69,500 $0 $69,500

Total One Time Costs $0 $812,500 $0 $99,500 $0 $84,500

Cost Categories Year 1 Year 2 Year 3 Cloud Traditional

and Network Cloud Traditional

and Network

Cloud Traditional and

Network Annual Costs

Maintenance / Hosting / Subscription Hardware / infrastructure maintenance $5,000 $5,000

Software maintenance $27,500 $27,500 Application Support $50,000 $50,000 $50,000

Procure to Pay subscription $650,000 $300,000 $650,000 $300,000 $650,000 $300,000 Req to PO subscription

Expense management subscription Contracts module subscription $0 $50,000 $0 $50,000 $0 $50,000 Payables module subscription

Spend analysis subscription $0 Transaction fees $0 $400,000 $0 $400,000 $0 $400,000

Hosting fees Maintenance / Hosting / Subscription $650,000 $800,000 $650,000 $832,500 $650,000 $832,500

Services & Fees: Supplier enablement $0 $50,000 $0 $50,000 $0 $50,000

Supplier fees $0 $1,200,000 $2,000,000 $2,400,000 Services & Fees $0 $1,250,000 $0 $2,050,000 $0 $2,450,000

Total Annual Costs $650,000 $2,050,000 $650,000 $2,882,500 $650,000 $3,282,500 Opportunity Costs

Savings lost from continued maverick spend $0 $1,250,000 $0 $937,500 $703,125 Savings Lost $0 $1,250,000 $0 $937,500 $0 $703,125

Total Costs $650,000 $4,112,500 $650,000 $3,919,500 $650,000 $4,070,125

Annual  Costs  

31  

Cost Categories Year 1 Year 2 Year 3 Cloud Traditional

and Network Cloud Traditional

and Network

Cloud Traditional and

Network Annual Costs

Maintenance / Hosting / Subscription Hardware / infrastructure maintenance $5,000 $5,000

Software maintenance $27,500 $27,500 Application Support $50,000 $50,000 $50,000

Procure to Pay subscription $650,000 $300,000 $650,000 $300,000 $650,000 $300,000 Req to PO subscription

Expense management subscription Contracts module subscription $0 $50,000 $0 $50,000 $0 $50,000 Payables module subscription

Spend analysis subscription $0 Transaction fees $0 $400,000 $0 $400,000 $0 $400,000

Hosting fees Maintenance / Hosting / Subscription $650,000 $800,000 $650,000 $832,500 $650,000 $832,500

Services & Fees: Supplier enablement $0 $50,000 $0 $50,000 $0 $50,000

Supplier fees $0 $1,200,000 $2,000,000 $2,400,000 Services & Fees $0 $1,250,000 $0 $2,050,000 $0 $2,450,000

Total Annual Costs $650,000 $2,050,000 $650,000 $2,882,500 $650,000 $3,282,500 Opportunity Costs

Savings lost from continued maverick spend $0 $1,250,000 $0 $937,500 $703,125 Savings Lost $0 $1,250,000 $0 $937,500 $0 $703,125

Total Costs $650,000 $4,112,500 $650,000 $3,919,500 $650,000 $4,070,125

Annual  Costs  

32  

Cost Categories Year 1 Year 2 Year 3 Cloud Traditional

and Network Cloud Traditional

and Network

Cloud Traditional and

Network Annual Costs

Maintenance / Hosting / Subscription Hardware / infrastructure maintenance $5,000 $5,000

Software maintenance $27,500 $27,500 Application Support $50,000 $50,000 $50,000

Procure to Pay subscription $650,000 $300,000 $650,000 $300,000 $650,000 $300,000 Req to PO subscription

Expense management subscription Contracts module subscription $0 $50,000 $0 $50,000 $0 $50,000 Payables module subscription

Spend analysis subscription $0 Transaction fees $0 $400,000 $0 $400,000 $0 $400,000

Hosting fees Maintenance / Hosting / Subscription $650,000 $800,000 $650,000 $832,500 $650,000 $832,500

Services & Fees: Supplier enablement $0 $50,000 $0 $50,000 $0 $50,000

Supplier fees $0 $1,200,000 $2,000,000 $2,400,000 Services & Fees $0 $1,250,000 $0 $2,050,000 $0 $2,450,000

Total Annual Costs $650,000 $2,050,000 $650,000 $2,882,500 $650,000 $3,282,500 Opportunity Costs

Savings lost from continued maverick spend $0 $1,250,000 $0 $937,500 $703,125 Savings Lost $0 $1,250,000 $0 $937,500 $0 $703,125

Total Costs $650,000 $4,112,500 $650,000 $3,919,500 $650,000 $4,070,125

Annual  Costs  

33  

Manufacturing  P2P  TCO  Case  Study  Results  

Result:  Overall  TCO  for  a  Cloud  based  soluIon  is  significantly  lower  than  a  comparable  On-­‐Premise/Network  soluIon  

Year 1 Year 2 Year 3 Procure to Pay Costs Summary Cloud Traditional

and Network Cloud Traditional

and Network

Cloud Traditional and

Network One Time Costs $0 $812,500 $0 $99,500 $0 $84,500

Annual Costs $650,000 $630,000 $650,000 $727,500 $650,000 $742,500

Total Costs $650,000 $1,442,500 $650,000 $827,000 $650,000 $827,000

Annual Differerence $792,500 $177,000 $177,000

Total Three Year Savings = $1,146,500

Case  Study  Results  

Result:  Overall  TCO  for  a  Cloud  based  soluIon  is  significantly  lower  than  a  comparable  On-­‐Premise/Network  soluIon  

$0.00  $0.50  $1.00  $1.50  $2.00  $2.50  $3.00  $3.50  $4.00  $4.50  

IniIal  Investment   Year  1   Year  2   Year  3  

Millions  

On-­‐site  Development  Costs  

Cloud  Development  Costs  

Initial Investment Year 1 Year 2 Year 3On-site Development Costs $0 $3,855,000 $3,822,000 $3,987,625Cloud Development Costs $0 $850,000 $850,000 $850,000

Cumulative Total Cost of Ownership

Tip  #1-­‐  ExecuIve  Sponsorship  

“Get  to  yes.”  

PayStream’s  Success  factors  of  Innovators  

q Develop  compelling  vision  of  what  you          

will  gain  with  Spend  OpImizaIon  

q Calculate  a  realisIc  Total  Cost  of  Ownership  

q Build  a  bullet-­‐proof  business  case  

q Plan  your  aQack  &  build  a  roadmap  

Download  The  TCO  Tool  

www.paystreamadvisors.com

More  informa&on  

Tony  Wessels  -­‐  Coupa  [email protected]  

Henry  Ijams  –  Paystream  Advisors  [email protected]        

Coupa  World  Tour  

www.coupa.com

Thank You!