Cloud Computing for CPAs: What Your Client Will Ask You
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The document outlines services offered by Brittenford, including financial management and cloud computing solutions, highlighting key issues and trends in cloud adoption among CFOs. It discusses the shift in CFO roles towards business acceleration and the importance of efficient financial management solutions, alongside potential cost savings associated with cloud services. Additionally, it raises concerns regarding compliance, security, and service level agreements in the context of ERP systems in the cloud.
Cloud Computing for CPAs: What Your Client Will Ask You
- 2. Shereen Mahoney– CEO smahoney@brittenford.com 703-828-2420 Brian Dietz – President bdietz@brittenford.com 703-828-2421
- 3. • Financial Management Microsoft Dynamics GP, Microsoft Dynamics SL, and Intacct • Customer Relationship Management Microsoft Dynamics CRM • Collaboration, Workflow and Analysis Microsoft Office SharePoint Server and SharePoint Online • Data Integrations, Reporting, and Analysis Microsoft SQL Server and Microsoft Reporting Services • Budgeting and Forecasting Microsoft Forecaster • Application and Network Infrastructure Services On-Premise Network and Cloud Services Engineering • Cloud Services Office 365 Online, Lync, SharePoint Online • Strategic Infrastructure Consulting Outsourced CTO Services • Staffing Services Temporary and Full-Time Dynamics GP, SL, NAV and AX Staffing Services Plus End User Education and Dedicated User Support
- 4. Why All The Hype about Cloud Computing? What Are The Economics of Cloud Computing? What Are Some Of The Compliance and Security Issues of Cloud Computing? What Should Your Client Consider When They Enter Into Cloud Contract?
- 5. They use some cloud services now and they will use more in the future They are exploring some options and plan to use cloud services in the upcoming year They don’t use cloud services They don’t know what “cloud computing” means
- 6. CFOs have a strong desire to change their organizational role within their company to that of business accelerator, rather than a score keeper … Score Keeper Current Role 30% Gate Keeper 30% Provider of Analysis 32% Business Accelerator 8% Score Keeper 4% Gate Keeper Provider of 4% Analysis 29% Business Accelerator 63% Desired Role Source: Armanino McKenna, “The CFO Evolution – 2011 Benchmark Survey Results”, Dec 2010
- 7. … however, inefficiency in the accounting function often thwarts the desire to focus on business leadership activities motivating their need to switch financial management solutions Managing cash and budget Improving operational business processes Improving information provided to managers in the organization Improving finance and accounting business processes Improving controls and compliance Implementing a new ERP system Managing investments Other 3% 4% 5% 9% Top Issues for CFO Organizations 16% 20% 20% 23% Source: Armanino McKenna, “The CFO Evolution – 2011 Benchmark Survey Results”, Dec 2010
- 8. Source – March 1st - CFO Magazine – Kim Girard; http://www.cfo.com/article.cfm/14557408/c_14557613
- 9. Source – March 1st - CFO Magazine – Kim Girard; http://www.cfo.com/article.cfm/14557408/c_14557613
- 10. Virtualization Hosting Cloud Computing
- 11. Source: Gartner June 2009 “Five Refining Attributes of Public and Private Cloud Computing” 1. Service-based: “well defined” service interface 2. Scalable and elastic: key benefit, scales up/down 3. Shared: pooled to meet multiple client needs (virtualized) 4. Metered by use: determined by client’s use (Servers = CPU, Storage = Meg, License = User) 5. Uses Internet technologies: Internet identifiers, protocols Delivering on all five attributes increases the value of the service to the client
- 12. Cloud Hybrid Continuum Example Companies currently offering Cloud (but are not limited to): • Amazon Web Services • Google , IBM • Intacct, Microsoft, Salesforce.com On-premise product resale • On-premise product re-sale, product related services, etc. On-premise hosted • Hosting, platform, solution, or data resides on-premise Off-premise hosted • Hosting, platform, solution, and data resides at third party Private Cloud Computing utilizes servers, storage, software and Cloud tools to build private customer Clouds behind your firewalls Public Cloud Computing encompasses three main concepts: pay-as-you-go, on-demand and on the Net. Cloud Computing: Software as a Service SaaS vendors (e.g., Intacct, Salesforce.com and Office 365) supply the application on a recurring revenue basis, often priced by user by the month. Platform as a Service • PaaS delivers development servers/environments and tools as a service, for example Microsoft Azure. Infrastructure as a Service • IaaS is essentially the virtualization of the data center enabling the on-demand purchase of storage and server capacity, for example Amazon or Rackspace.
- 15. Potential Cost Savings Lower Capital Costs Internal Operational Scalability Telework Potential Business Continuity Upgrades/Service Packs Frees up IT for strategic goals and revenue
- 16. Lower Upfront Infrastructure Costs Long Term Rental and Management Costs
- 17. Ranked Highest: Lower up-front infrastructure costs Rapid deployment of applications Source: Info-Tech Research Group N = 123
- 18. On-Premises Cloud Computing Ongoing Costs Ongoing Costs • Ongoing burden on IT • Maintain/upgrade hardware • Maintain/upgrade network • Maintain/upgrade security • Maintain/upgrade database • Apply Fixes, Patches, Upgrade • Downtime • Performance tuning • Rewrite customizations • Rewrite integrations • Upgrade dependent applications • Subscription fee • Training • Configuration Source: Yankee Group Decision Note Technology Analysis
- 19. Avoid upfront software costs Reduce IT budgets for operations Ease deployment and infrastructure expenses Leverage an alternate pricing structure
- 20. Accounting for internal costs on premise Internal labor Physical hosting costs (power, cooling, security) Hardware replacement and maintenance Updates and patch management Team management/training Licensing Skillset best fit Backup and disaster recovery
- 21. • Even when companies no longer have direct control over their IT systems, • They remain responsible for ensuring that services outsourced to third-party providers meet performance and stability targets • That these services remain in compliance with all applicable laws, regulations and contracts. PriceWaterhouseCoopers Technology Forecast, “How CFO’s Should Audit the Cloud Balance Sheet.” Baya, Myers
- 22. Can we be Sarbanes-Oxley compliant with an ERP system in the cloud? Are we more or less compliant in the cloud with our own standards? Who in our organization is responsible for setting the policy for the data compliance?
- 23. Category Description of Data in the “Cloud” 1. Banking 2. Payroll 3. Credit Card 4. Financial Mgt 5. Sales Data 6. Tax Filing 7. Web Mail 8. Health Records • Online Banking • Employee Payroll Information • Credit card transactions • General Ledger Extent of Market • CRM – contact data • Tax Return Processing • Yahoo, Google Email accounts • Universal health records • 80% of consumers use online banking (200 million plus accounts) • Payroll bureaus house all data. Over 2 million small businesses outsource payroll • Consumer credit card data available online • Over 250K small businesses use web based General Ledger • Salesforce.com has over 50,000 businesses using their service • IRS Data • Millions of returns done online • 55% of CPAs maintain an account • Major initiative • Most business data is already outside of the business immediate infrastructure. • Key is to make sure controls are in place vs physical control of data.
- 24. View of the ERP components in the Cloud
- 25. Despite the concerns about security, 58% of organizations that have adopted the cloud say it has had a positive effect on their security Negative Effect No Effect Positive Effect
- 26. Online Snapshots (up to 512) Disk-based Recovery Tape-based Backup Data Protection Data Protection Manager Manager Disaster Recovery with offsite replication tape
- 27. Determine the lowest risk location for your data to protect it Review best practices of cloud computing vs. local internal IT Leverage the cloud disaster recovery planning
- 28. Uptime guarantees Service-level agreement penalties SLA penalty exclusions Security Business continuity and disaster recovery Data privacy conditions Suspension of service Termination Liability
- 29. 1. Planning and provisioning • Number of users, baseline usage, growth rates, etc. 2. Negotiation of Terms • Many vendors will negotiate terms for larger contracts 3. Review Service Level Agreements • Ask about uptime and availability 4. Data Protection, Business Continuity • Ask about alternative connectivity and backup planning
- 30. Why All The Hype about Cloud Computing? What Are The Economics of Cloud Computing? What Are Some Of The Compliance and Security Issues of Cloud Computing? What Should Your Client Consider When They Enter Into Cloud Contract?
- 32. Send an email bdietz@brittenford.com
- 33. Shereen Mahoney– CEO smahoney@brittenford.com 703-828-2420 Brian Dietz – President bdietz@brittenford.com 703-828-2421
- 34. Helping organizations harness the power of business technology.