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 RoseSVP, Infor Labs

2Copyright © 2013. Infor. All Rights Reserved. www.infor.com


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

Jeff


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 ittakes to make

decisions

Decrease in cycletime of key processes

Improvements incomplete, on-time

delivery

Improvements inprofit margins

Cloud

On-premise

36

16

24 25

1721

18

7

3X the

improvement

in profit margins

Source: Aberdeen Group, “The Benefits of Cloud ERP: It’s About Transforming Your Business


Managed InfrastructureResource

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 ERP50% 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

Jeff

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

TechnologyFinancial management

Human capital management

Enterprise asset management


Time to Value – Micro-Vertical Focus Examples

Jeff


Automatic Upgrades New Technologies

Easy Access to New TechnologyConstant

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 ExpansionAgility

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

SecurityPhysical

Security

Operations

SecurityMonitoring


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

Technology

evaluate introductions

business effectiveness

software license

rights reserved

cloud deployment

cloud erp

aberdeen group

business