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Cloud Applications Success:
Lessons from Early Adopters

                              Cloud Business Applications
Speakers:


     Anurag Agrawal
                                        “The cloud gives us
     CEO & Research Executive            one of the greatest
     Techaisle
                                         opportunities we’ve
                                         seen in a long
     Travis Pillen                       history of IT trends
     CRM Operations Lead                 to fundamentally
     Schoolwires
                                         change the way we
                                         work and live.”
     Bill Odell
     Marketing Director
     Dell Cloud Business Applications                  Michael Dell




2        3/12/2012                               Cloud Business Applications
Agenda

• Why cloud and why now
• How to start your cloud journey
• Cloud adoption lessons for success
    – Vendor selection is a critical step to cloud success
    – Adequate planning to avoid deployment challenges
    – Integration for maximizing business value
• Schoolwires cloud adoption story
    – Business case for cloud CRM
    – Adoption considerations
    – ROI on cloud project
• Q&A


3              3/12/2012                                     Cloud Business Applications
About Techaisle

Global SMB IT Market Research and Industry Analyst 
organization. 
Focused on Tracking the Future of SMBs & Channels. 
Delivering forward looking analysis on emerging 
technologies such as cloud computing, managed 
services, mobility, social media usage, and 
virtualization.
Channel partner research coverage provides in‐depth 
understanding of resellers and distribution channels 
globally, as well as routes to market.
Develops predictive models and segmentation using 
Artificial Neural Networks that achieves very high 
accuracy levels.
SMB Cloud Trends Survey

Findings are based on an online study of 400 US small and mid‐
market businesses who use cloud business applications.
Respondents were business decision makers (BDMs) and IT 
decision makers (ITDMs) in companies with 50 to 999 employees. 
The objectives were to understand:
    Which cloud business applications are being used by SMBs
    What benefits SMBs realized by adopting cloud business applications
    What SMBs learned from their cloud implementation experience
    What are best practices for maximizing the value of cloud applications
Cloud offers compelling benefits

                                      SMBs’ attitude towards cloud computing
                                    (% SMBs responded Agree + Agree Strongly)




                   87%
                                             85%                         85%
                                                                                                    83%

           Cloud applications is   Cloud is allowing us to gain Cloud makes people &           Cloud business
            providing us with a    capabilities that only large business more productive applications offer superior
          competitive advantage      enterprises  previously                                        TCO
                                           could afford




Base: 400 SMBs using cloud applications
SMBs start with business applications


                                 Cloud application vs. Cloud infrastructure 

                       Started using cloud business
                                   Cloud Applications
                                                                  47%
                          applications/SaaS first
               SaaS ‐ CRM, ERP, project management, BI

                            Started using cloud
                                 Cloud Infrastructure
                        infrastructure before cloud
                       Server, security, back‐up, storage   26%
                        business applications/SaaS

                                    At the same time
                                    At the same time        26%


                                              Not Sure
                                              Not sure 2%




Base: 400 SMBs using cloud applications
Cloud application adoption is accelerating


             Years using cloud applications              Average number of cloud business 
                                                          applications being used by SMBs

   More than 3 years          24%




                                              Adopters
                                                Early 
             2‐3 years              40%
                                                                                       7
                                                                        4 
             1‐2 years         31%                        2 

                                                         2010          2011      Expected 2012
                 < 1yr   6%




Base: 400 SMBs using cloud applications
Cloud expectations match reality

Reasons for adopting cloud applications           Benefits realized from cloud applications


1. Faster deployment time                         1. Lower total cost of ownership  
                                                     (applications, hardware, maintenance)
2. Simplified access through a browser from 
   any location                                   2. Faster deployment of solutions
3. Allows IT staff to focus on more important     3. Having the latest features/functionality as 
   business needs                                    soon as they are available
4. Eliminating the need to upgrade individual     4. Repurposing IT staff to address more 
   users                                             critical needs
5. Getting new features automatically without     5. Access to capabilities and features 
   having to go through upgrades                     previously outside of reach


  Base: 751 SMBs considering cloud applications     Base: 400 SMBs using cloud applications
CRM is at the core of cloud adoption


       Cloud applications currently used     % SMBs
                                                                                              1 in 2 consider 
      CRM                                      55%                                            CRM to be 
                                                                                              mission critical

      Project Management                       54%                                                26% of CRM 
                                                                     CRM has 
      Business Analytics/                                                                         users will add 
                                                                      highest 
                                               49%                 adoption: 55%
                                                                                                  business 
      Business Intelligence                                                                       intelligence
      Marketing Automation                     48%                                            26% of CRM 
                                                                                              users will add 
      Payroll                                  48%                                            marketing 
                                                                                              automation
      Human Resources/Benefits & 
                                               43%
      Performance Management



      CRM, which includes sales, support and service automation capabilities, is a strong catalyst for 
      improving revenue and customer satisfaction

Base: 400 SMBs using cloud applications
Cloud adoption lessons for success



      Right cloud vendor selection
      Planned deployment
      Proper integration 




Base: 400 SMBs using cloud applications
Right 

                SMBs prefer a single trusted vendor
                                                                                                                               Vendor 
                                                                                                                              Selection 
                                                                                                                               Avoids 
                                                                                                                               Pitfalls


    Pain points experienced by early adopters from
                                                                        % SMBs           SMBs’ preference to procure cloud 
          managing multiple cloud vendors
                                                                                                   applications
 Each deployment has different challenges and issues                      58%

 Keep track of different SLAs with each different vendor                  50%

 Explain our business objectives to different vendors                     48%
                                                                                       69%
 Time-consuming to deal with & manage                                     44%
                                                                                                          23%
 Coordinate with multiple vendors for integration                         43%                                                9%
                                                                                  Prefer to procure   Prefer to work     Indifferent
                                                                                   From a single       From different     Indifferent
 Different response & problem resolution timeframes                       42%     applications from    directly with
                                                                                 trusted IT vendor different vendors
                                                                                  a single trusted IT
                                                                                                      vendors directly
                                                                                        vendor
 We have to manage multiple billings and payments                         38%
Base: 140 respondent organizations that used more than one vendor for their       Base: 400 SMBs using cloud applications
cloud business applications



 What some early adopters of cloud applications said in the survey regarding vendor selection:
• “Research for the best and the most reliable vendors”
• “Find a vendor with better customer service”
• “Look for vendors with the capacity of delivering on time as promised”
• “Try to select applications from single vendor”
• “We’re in the business for making profit, so we are planning to cut down our expenditure on multiple vendors”
Planning & preparation:                                                                         Planned 
                                                                                                              Deployment 
                                                                                                                Drives 

               Keys to implementation success
                                                                                                                Better 
                                                                                                              Experience




                                      Types of deployment issues faced by SMBs




              49%
                                      41%                   40%                    36%

                                                                                                         6%
          Longer than         Limited integration      Lack of  training   Lack of customization   Other deployment
           anticipated       with other applications                                                     issues
        deployment cycle




   Survey respondents mention that quicker deployment can achieved by:
   • Working with vendors and partners that provide implementation packages rather than lengthy and 
     pricey custom service engagements




Base: 400 SMBs using cloud applications
Sound 


                Integration needs to be flexible
                                                                                                                                 Integration 
                                                                                                                                   Ensures 
                                                                                                                                  Maximum 
                                                                                                                                 Productivity



      Who Helped SMBs Integrate Cloud Applications                             How Satisfied were SMBs with Integration




                                                                                                        69%
         48%
                                 26%                    26%                   1%           3%                          21%         17%
      In‐house staff         In‐house staff     Third‐Party integrated   Extremely Unsatisfied         Neutral     Satisfied    Extremely
     integrated the         integrated the           applications        Unsatisfied                                             Satisfied
 applications by writing applications by using
     software code      third‐party integration
                                solutions

Survey respondents strongly felt that:                                              What SMBs want from Integration
• “Applications could have been better integrated”

• “Integration is the toughest part, so we would focus 
  more on this area”                                                          63%               58%              54%
                                                                                                                                 35%
• “Make integration more seamless and simple”

• “More compatible interoperability”                                     Easily modify the Enhance existing    Develop       Integrate more
                                                                            integration      integrations     integrated       applications
• “Sound integration”                                                        based on                          business
                                                                         business process                     dashboards
                                                                              changes
Base: 376 SMBs that integrated their cloud applications with cloud and/or on-premise solutions
Conclusion: Cloud Adoption is beyond Hype
         Successful cloud implementation strategy is highly dependent upon selection of
         right cloud vendor, planned deployment and sound integration



     Cloud Application        • Cloud applications have given SMBs tactical & strategic advantages
1     Adoption Rising         • Cloud CRM is at the center of cloud adoption




         Right Vendor         • Managing multiple cloud vendors creates multiple problems
2     Selection Avoids        • Procure best-of-breed cloud applications from a single trusted
                Pitfalls        vendor



              Planned         • Reduced deployment time & proper training equals customer delight
3   Deployment Drives         • Identify cloud vendors that offer implementation packages
     Better Experience


    Sound Integration         • Integration leads to significant benefits
4   Ensures Maximum           • Look for flexible, scalable and quick to deploy integration solutions
         Productivity           without coding
Cloud Adoption Case Study:
Schoolwires
Travis Pillen
CRM Operations Lead
About Schoolwires

  Overview and Mission
  Business Overview
     Content Management Systems for K-12 School
     Districts
     Over 1,000 school districts and 8 million users
     www.schoolwires.com
Experience with Cloud Applications

  Schoolwires Centricity2 solution is cloud-based

  Cloud Applications
     Marketo, Yammer, GoToMeeting, and Concur
     Recently added Salesforce.com and Dell Boomi


  On-Premise Applications
     Microsoft Dynamics CRM and Great Plains
Schoolwires Business Case for CRM

 MS Dynamics CRM for Sales and Service

    On-premise solution slow and rigid
    CRM as a sales tool
    Growing company in a maturing industry


 Solution:
    Salesforce.com for Sales, MS CRM for Service
    Integrate two systems
Cloud Adoption Considerations

Integration
   3rd Party: Custom or Packaged?
   Flexibility: business processes change
   Scalability for future integrations
Deployment
   Speed, support, and flexibility
Vendor Selection
   Understand our business case
   CRM expertise
   Schoolwires owns the integration process


                                              20
Return on Investment to date…
Go Live at start of Q2!

Financial
   Customizations and maintenance
   Staff time efficiencies


Organizational
   Systemic harmony between Sales, Marketing, and Services Teams
   Exploration of additional cloud applications and integrations




                                                                   21
Planning your cloud project…
Integration
   Scalability
   Involve organizational stakeholders
Deployment
   Refine and enhance your CRM business processes
   Seek outside expertise
   Deadlines, milestones, and testing
Vendor selection
   Understanding your business case
   Resources beyond implementation




                                                    22
Dell Cloud               DELL SERVICES
Business
Applications                 Cross-Application
                                 Analytics



An end-to-end          CRM     Accounting
solution….           Trusted Applications
                             Marketing           HR



                          Seamless
                         Integration



                        SINGLE SIGN-ON




                      Existing applications


 23   Confidential                       Cloud Business Applications
Q&A


24   Confidential         Cloud Business Applications
For More
Information             Tracking the Future of SMBs

                         www.techaisle.com




                       www.schoolwires.com



                           Cloud Business Applications


                    www.dellcloudapplications.com

25   Confidential               Cloud Business Applications
Thank you

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Cloud Applications Success: Lessons from Early Adopters

  • 1. Cloud Applications Success: Lessons from Early Adopters Cloud Business Applications
  • 2. Speakers: Anurag Agrawal “The cloud gives us CEO & Research Executive one of the greatest Techaisle opportunities we’ve seen in a long Travis Pillen history of IT trends CRM Operations Lead to fundamentally Schoolwires change the way we work and live.” Bill Odell Marketing Director Dell Cloud Business Applications Michael Dell 2 3/12/2012 Cloud Business Applications
  • 3. Agenda • Why cloud and why now • How to start your cloud journey • Cloud adoption lessons for success – Vendor selection is a critical step to cloud success – Adequate planning to avoid deployment challenges – Integration for maximizing business value • Schoolwires cloud adoption story – Business case for cloud CRM – Adoption considerations – ROI on cloud project • Q&A 3 3/12/2012 Cloud Business Applications
  • 5. SMB Cloud Trends Survey Findings are based on an online study of 400 US small and mid‐ market businesses who use cloud business applications. Respondents were business decision makers (BDMs) and IT  decision makers (ITDMs) in companies with 50 to 999 employees.  The objectives were to understand: Which cloud business applications are being used by SMBs What benefits SMBs realized by adopting cloud business applications What SMBs learned from their cloud implementation experience What are best practices for maximizing the value of cloud applications
  • 6. Cloud offers compelling benefits SMBs’ attitude towards cloud computing (% SMBs responded Agree + Agree Strongly) 87% 85% 85% 83% Cloud applications is Cloud is allowing us to gain Cloud makes people & Cloud business providing us with a capabilities that only large business more productive applications offer superior competitive advantage enterprises  previously TCO could afford Base: 400 SMBs using cloud applications
  • 7. SMBs start with business applications Cloud application vs. Cloud infrastructure  Started using cloud business Cloud Applications 47% applications/SaaS first SaaS ‐ CRM, ERP, project management, BI Started using cloud Cloud Infrastructure infrastructure before cloud Server, security, back‐up, storage 26% business applications/SaaS At the same time At the same time 26% Not Sure Not sure 2% Base: 400 SMBs using cloud applications
  • 8. Cloud application adoption is accelerating Years using cloud applications Average number of cloud business  applications being used by SMBs More than 3 years 24% Adopters Early  2‐3 years 40% 7 4  1‐2 years 31% 2  2010 2011 Expected 2012 < 1yr 6% Base: 400 SMBs using cloud applications
  • 9. Cloud expectations match reality Reasons for adopting cloud applications Benefits realized from cloud applications 1. Faster deployment time 1. Lower total cost of ownership   (applications, hardware, maintenance) 2. Simplified access through a browser from  any location 2. Faster deployment of solutions 3. Allows IT staff to focus on more important  3. Having the latest features/functionality as  business needs soon as they are available 4. Eliminating the need to upgrade individual  4. Repurposing IT staff to address more  users critical needs 5. Getting new features automatically without  5. Access to capabilities and features  having to go through upgrades previously outside of reach Base: 751 SMBs considering cloud applications Base: 400 SMBs using cloud applications
  • 10. CRM is at the core of cloud adoption Cloud applications currently used % SMBs 1 in 2 consider  CRM 55% CRM to be  mission critical Project Management 54% 26% of CRM  CRM has  Business Analytics/ users will add  highest  49% adoption: 55% business  Business Intelligence intelligence Marketing Automation 48% 26% of CRM  users will add  Payroll 48% marketing  automation Human Resources/Benefits &  43% Performance Management CRM, which includes sales, support and service automation capabilities, is a strong catalyst for  improving revenue and customer satisfaction Base: 400 SMBs using cloud applications
  • 11. Cloud adoption lessons for success Right cloud vendor selection Planned deployment Proper integration  Base: 400 SMBs using cloud applications
  • 12. Right  SMBs prefer a single trusted vendor Vendor  Selection  Avoids  Pitfalls Pain points experienced by early adopters from % SMBs SMBs’ preference to procure cloud  managing multiple cloud vendors applications Each deployment has different challenges and issues 58% Keep track of different SLAs with each different vendor 50% Explain our business objectives to different vendors 48% 69% Time-consuming to deal with & manage 44% 23% Coordinate with multiple vendors for integration 43% 9% Prefer to procure Prefer to work Indifferent From a single  From different  Indifferent Different response & problem resolution timeframes 42% applications from directly with trusted IT vendor different vendors a single trusted IT vendors directly vendor We have to manage multiple billings and payments 38% Base: 140 respondent organizations that used more than one vendor for their Base: 400 SMBs using cloud applications cloud business applications What some early adopters of cloud applications said in the survey regarding vendor selection: • “Research for the best and the most reliable vendors” • “Find a vendor with better customer service” • “Look for vendors with the capacity of delivering on time as promised” • “Try to select applications from single vendor” • “We’re in the business for making profit, so we are planning to cut down our expenditure on multiple vendors”
  • 13. Planning & preparation: Planned  Deployment  Drives  Keys to implementation success Better  Experience Types of deployment issues faced by SMBs 49% 41% 40% 36% 6% Longer than Limited integration Lack of  training Lack of customization Other deployment anticipated with other applications issues deployment cycle Survey respondents mention that quicker deployment can achieved by: • Working with vendors and partners that provide implementation packages rather than lengthy and  pricey custom service engagements Base: 400 SMBs using cloud applications
  • 14. Sound  Integration needs to be flexible Integration  Ensures  Maximum  Productivity Who Helped SMBs Integrate Cloud Applications How Satisfied were SMBs with Integration 69% 48% 26% 26% 1% 3% 21% 17% In‐house staff In‐house staff Third‐Party integrated Extremely Unsatisfied Neutral Satisfied Extremely integrated the integrated the applications Unsatisfied Satisfied applications by writing applications by using software code third‐party integration solutions Survey respondents strongly felt that: What SMBs want from Integration • “Applications could have been better integrated” • “Integration is the toughest part, so we would focus  more on this area” 63% 58% 54% 35% • “Make integration more seamless and simple” • “More compatible interoperability” Easily modify the Enhance existing Develop Integrate more integration integrations integrated applications • “Sound integration” based on business business process dashboards changes Base: 376 SMBs that integrated their cloud applications with cloud and/or on-premise solutions
  • 15. Conclusion: Cloud Adoption is beyond Hype Successful cloud implementation strategy is highly dependent upon selection of right cloud vendor, planned deployment and sound integration Cloud Application • Cloud applications have given SMBs tactical & strategic advantages 1 Adoption Rising • Cloud CRM is at the center of cloud adoption Right Vendor • Managing multiple cloud vendors creates multiple problems 2 Selection Avoids • Procure best-of-breed cloud applications from a single trusted Pitfalls vendor Planned • Reduced deployment time & proper training equals customer delight 3 Deployment Drives • Identify cloud vendors that offer implementation packages Better Experience Sound Integration • Integration leads to significant benefits 4 Ensures Maximum • Look for flexible, scalable and quick to deploy integration solutions Productivity without coding
  • 16. Cloud Adoption Case Study: Schoolwires Travis Pillen CRM Operations Lead
  • 17. About Schoolwires Overview and Mission Business Overview Content Management Systems for K-12 School Districts Over 1,000 school districts and 8 million users www.schoolwires.com
  • 18. Experience with Cloud Applications Schoolwires Centricity2 solution is cloud-based Cloud Applications Marketo, Yammer, GoToMeeting, and Concur Recently added Salesforce.com and Dell Boomi On-Premise Applications Microsoft Dynamics CRM and Great Plains
  • 19. Schoolwires Business Case for CRM MS Dynamics CRM for Sales and Service On-premise solution slow and rigid CRM as a sales tool Growing company in a maturing industry Solution: Salesforce.com for Sales, MS CRM for Service Integrate two systems
  • 20. Cloud Adoption Considerations Integration 3rd Party: Custom or Packaged? Flexibility: business processes change Scalability for future integrations Deployment Speed, support, and flexibility Vendor Selection Understand our business case CRM expertise Schoolwires owns the integration process 20
  • 21. Return on Investment to date… Go Live at start of Q2! Financial Customizations and maintenance Staff time efficiencies Organizational Systemic harmony between Sales, Marketing, and Services Teams Exploration of additional cloud applications and integrations 21
  • 22. Planning your cloud project… Integration Scalability Involve organizational stakeholders Deployment Refine and enhance your CRM business processes Seek outside expertise Deadlines, milestones, and testing Vendor selection Understanding your business case Resources beyond implementation 22
  • 23. Dell Cloud DELL SERVICES Business Applications Cross-Application Analytics An end-to-end CRM Accounting solution…. Trusted Applications Marketing HR Seamless Integration SINGLE SIGN-ON Existing applications 23 Confidential Cloud Business Applications
  • 24. Q&A 24 Confidential Cloud Business Applications
  • 25. For More Information Tracking the Future of SMBs www.techaisle.com www.schoolwires.com Cloud Business Applications www.dellcloudapplications.com 25 Confidential Cloud Business Applications