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.

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