Are You Ready for Replatforming? Cloud vs. On-Premise
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This webinar discusses the differences between cloud and on-premise software solutions. It defines cloud as technology accessed as a service through the internet, while on-premise refers to software installed locally. The webinar explores pros and cons of each approach and how they may fit different business needs. It also uses a sample company called Acme Distribution to illustrate how different stakeholders could view cloud vs on-premise options.
Are You Ready for Replatforming? Cloud vs. On-Premise
- 1. wwwwww..bbllyytthheecoc.oco.cmom Are You Ready for Replatforming? Webinar 5: Cloud vs. On-Premise
- 2. Agenda Recap: What is Replatforming? Definitions – cloud vs. on-premise Pros and Cons of each Where do they fit? Next Steps and resources for today
- 3. Introductions Alicia Anderson Strategic Marketing Atlanta, GA-based 19 years in ERP/CRM sales, service and marketing
- 4. What is replatforming? Moving to automation for the first time. Transitioning to a new system. Upgrading an existing system. This series is designed to give you the tools and knowledge needed to make ERP/CRM transition smooth and minimize risk. Industry analyst Mint Jutras reports that 73% of surveyed companies said that “management driven change was requiring moderate to substantial ERP change”
- 5. The Series Series Introduction – May 7 How to Build a Business Case – June 4 How to Scope Your Project – July 9 How to Evaluate Solutions and Build Your Evaluation Committee – Wednesday – August 6 Cloud vs. On-Premise - TODAY Know Your Payment Options - Wednesday, September 24
- 6. 5 Cloud vs. On-Premise
- 7. Cloud Technology as a Service IaaS, PaaS, SaaS Providers install and operate application software in data centers Example: Gmail/Google Docs, Facebook, NetSuite, Salesforce.com Sold as a subscription On-Premise Traditional deployment Users install and manage application software on their own equipment Example: Sage 100, Microsoft Office, Saleslogix Sold as a one-time license Let’s start with some definitions
- 8. What is the rate of ERP cloud adoption?
- 9. What is the rate of CRM cloud adoption? Gartner estimates 35% of all CRM software is now consumed using SaaS That figure is expected to grow to just over 50% by 2020.
- 10. Rent if… Your lifestyle is flexible and adaptable. You don’t want to invest in resources that you don’t need (i.e., lawnmower). You don’t need to customize your home to feel comfortable. Buy if… You need more stability. You have the resources to make long-term investments. You want to make it your own and highly customize your space. Rent vs. Buy Model
- 11. Perceived Pros and Cons of the Cloud Pros Cons Lack of control of upgrade schedule Data ownership Long term TCO Downtime potential* Less mature feature set Speed to deploy Op-ex vs. Cap-ex Always on Scalable Reduced demand on in-house IT staff
- 12. Perceived Pros and Cons of on-premise Pros Cons Requires IT resources to manage. Solutions can become version-locked. Heavy initial costs. Control over sensitive business data.* Control over upgrade schedule. Ability to depreciate costs. Option to stop paying maintenance and support at end-of-life.
- 13. The Reality of Deployment Costs
- 14. Where do they fit? Cloud On-Premise Customer Growth Status In acquisition or expansion mode; focused on business agility Stable, predictable business model; centralized, legacy equipment in place Top Verticals • Distribution/wholesale • Computer software publishers • Professional services • Retail/eCommerce • Distribution/wholesale • Manufacturing • Food and Beverage • Technology Customers include Eloqua (marketing automation solution), Magellan (GPS manufacturer) Groupon, VMware. Hansen’s Natural (beverage manufacturer/distributor), Best Bath Systems (bathing systems manufacturer). Business and Workplace Culture Users are social/mobile and use cloud applications (Gmail, Dropbox, etc.); collaborative environment; focus on data as value driver; fast decision cycles. Hierarchical and centralized environment; heavy compliance and regulatory requirements; highly sensitive data.
- 15. Rent if… Your business is changing or growing. IT resources needed to focus on other business priorities. Your processes are flexible and agility is a priority. Buy if… You have a stable business model. You already have invested in in-house IT resources. You need a high level of integration and/or customization. Rent vs. Buy Model
- 16. The Test Case Let’s walk through the cloud vs. on-premise question for a sample company to help illustrate where each option fits. Acme Distribution Company Mid-sized wholesaler Expanding into global markets Using legacy systems and siloed spreadsheets Growing organically
- 17. From the Executive perspective… Ability to be flexible and agile Ability to re-deploy IT resources to be strategic vs. help-desk Speed of deployment Bob Robinson, COO Cloud Preference
- 18. From the Finance perspective… Control of sensitive data Control of payments and ability to discontinue paying in the future while retaining use of the system Depreciation Joe Jones, Controller On-premise preference
- 19. From the IT perspective… Ability to utilize up to date technology Ability to be strategic vs. help-desk Speed of deployment Cloud Preference Bill Williams, IT Manager
- 20. From the Operations perspective… Concerns about downtime Almost unlimited ability to customize and integrate Potential regulatory concerns On-premise preference Jane Smith, Operations Manager
- 21. So which solution do they choose?
- 22. In summary… One size does not fit all Map the TCO over the life of the system Understand the priorities for your business Question the assumptions about each option
- 23. A Quick Audience Poll… Does your business currently use any cloud technology? File Storage or Sharing (DropBox, Google Drive) Database (Xeround) CRM (Salesforce, SugarCRM) Email (Gmail) eCommerce (eBay, Amazon) Other
- 24. Resources for today’s class Available on http://info.blytheco.com/replatform-resources ERP Comparison Guide Copy of this presentation Resources from previous classes
- 25. Next Class… Know your payment options – September 24
Editor's Notes
- #26: Alicia talking