Cloud Computing: Orientation & Current Trends

Transcription

1 Reaching New Heights: Cloud Computing De-Mystified April 5, Reaching New Heights: Cloud Computing De-Mystified Cloud Computing: Orientation & Current Trends 2 1

2 Cloud Computing Impacts both Consumers and Business - everyday 3 Cloud Computing: Served Up 3 Ways SaaS: Software as a Service Delivery of business applications over the Internet; Mature feature set and world-class operations PaaS: Platform as a Service Availability of a programming platform and tools as a service over the Internet IaaS: Infrastructure as a Service Raw computing resources (processing power, storage, etc.) over the Internet 4 2

3 Paradigm Shifted: Cloud Business Software = Mainstream System Category Productivity (Word, Excel) Customer Management Payroll and HR services Cloud Solutions Google docs suite Microsoft 365 beta Google enterprise MS Office cloud Salesforce.com Sugar CRM ADP Paychex Document/Content Mgt. Accounting/financials GoFileRoom, R efilecabinet SpringCM Intacct bydesign 5 SaaS Accounting Software: Key Benefits Best of Class to the masses Rapid procurement Ease of implementation Controls, Business Processes DRP, Financial reporting Simplified sales & demo Provision via the Internet No on-premises system/software Self guided implementation Lower cost of ownership Each instance is configurable No big CAPEX or IT dept. burden Pay as you grow Single code base; Version control Multi-tenant architecture 6 3

4 SaaS Software Serious, Proven and Integrated Examples of Integration using Web Services Accounting and Financial Management Applications 7 Reaching New Heights: Cloud Computing De-Mystified Benefits to Finance Organizations 8 4

5 Cloud Financials Deliver Anytime, Anywhere Access to Real-Time Data and Process 9 The Cloud Gets You Out Of the No Value Added IT Business Cloud vendors operate and maintain the system for you Better infrastructure and operations than nearly all companies can afford Fortune 100 class data centers 24x7x365 operations Continuous backups and disaster recovery SAS 70 type II audited Possible because costs are amortized across thousands of companies 10 5

6 The Cloud Offers Dramatically Better ROI + Shifts Fixed CAPEX to Variable OPEX On-Premises Cloud Computing Ongoing g Costs Ongoing g Costs Apply Fixes, Patches, Upgrade Downtime Performance tuning Rewrite customizations Rewrite integrations Upgrade dependent applications Ongoing burden on IT Maintain/upgrade hardware Maintain/upgrade network Maintain/upgrade security Maintain/upgrade database Training Subscription fee Training Configuration 11 * Yankee Group DecisionNote Technology Analysis Software Quote-to-Revenue Process Before Price List Sales Price List Finance Quote Contract Order Invoice Collect Recognize Revenue Contacts Customer Master stent Inconsis data Sales & Finance use different SKUs/prices = inaccurate fulfillment and invoicingi i Inaccurate contact info = inability to book and invoice orders Contract has nonstandard terms or terms not captured in order = inaccurate finance order and invoice and revenue leakage Customer name on contract not in Master = creation of duplicate customer accounts and incomplete view of customer relationship Sales lacks visibility into invoicing/collection status = added losses for orders taken from bad accounts Customer complaints about order/invoice errors = slower collections Revenue recognition not directly tied to events (e.g. fulfillment, collection status) = inaccurate revenue & restatements Re-entry Manual effort 12 Contract often prepared manually from Quote = added sales operations effort Order manually entered into financial system from signed contract with inevitable data entry errors = inaccurate fulfillment and invoicing; significant manual effort in order entry Invoicing requires manual effort (e.g. manual creation; recurring billings) = delayed billing/collections; added finance operations effort No status updates to Sales = large burden on Finance & Sales conveying simple information/correcting errors; slower collections Order/Invoice information reentered into Excel for manual revenue recognition calculation = inaccurate revenue & restatement; lack of revenue predictability; significant manual effort 6

7 Software Quote-to-Revenue Process After Sales Price List Finance Quote Contract Order Invoice Collect Recognize Revenue Customer Master Consistent Data Across Entire Company Entire Process Is Visible and Accurate Integrated and Automated; Quote to Revenue Recognition Lower Costs, Greater Efficiency & Customer Satisfaction 13 The Cloud Brings You Closer to Your Vendor Customer Feedback Continuous Innovation Rapid Access to New Features 14 7

8 Reaching New Heights: Cloud Computing De-Mystified A Customer Perspective 15 Matrix Absence Management Matrix is a nationwide company partnering with employers to provide customized management of Disability, Workers' Compensation and Family Leave programs. They are the leader in Absence Management. 16 8

9 Previous Infrastructure and Challenges Previous Infrastructure Financials: Epicor Data recovery plan: None Challenges Business growth demanding a more sophisticated and flexible solution Small and overburdened IT team Error-prone and time-consuming duplicate data entry process Lack of data recovery plan left company at considerable risk 17 Decision Making Process Biased toward SaaS Solutions explored Netsuite Decision making process Functional requirements 18 9

10 Benefits and ROI Streamlined and automated revenue recognition Eliminated need for complex spreadsheets Shortened financial i close processes by a full day Speed monthly invoicing time by 20% Eliminated manual processes Real-time visibility to state of the business Customized workflows for paperless processing Online approvals for payments and employee expenses Guaranteed operational excellence Backup and disaster recovery Relieve IT from application support 19 Why Intacct and Cloud Computing Lower total cost of ownership and high ROI Capabilities for now and into the future Ease of managing growth Achieved Disaster Recovery goals with no additional infrastructure costs. Allowed for substantially paperless accounting environment at no additional costs. Added Expense Report module at no additonal cost