Take Your Vision to the Cloud

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1 Take Your Vision to the Cloud Executive Summary Many Professional Service firms are moving their Deltek Vision solution to cloud with the aim of focusing limited IT resources on core business requirements instead of spending time maintaining infrastructure that in many cases does not add value to the business. The goal of your staff should not be to be experts in maintaining and updating systems, but in addressing and solving business challenges. This white paper provides a comprehensive look at the benefit from a higher quality solution, less risk, and faster time to value, but also how firms achieve these advantages at the same or lower total cost than an on-premise solution. How Easy is it to Move? Making the move to the Deltek Cloud could not be easier. We use the same Vision system that you use within your firm, but we do all of the work maintaining and monitoring it. Just upload your Vision database on a Friday and on Monday, your instance of Vision in the Cloud is ready for you to use with no interruptions in your business. We will even upgrade you to the latest version at no additional charge. Never again worry about software updates, hardware updates, security patches, remote office access or any of the other tasks that take you away from focusing on your core business Despite Benefits, Some SMBs Hesitate to Adopt Cloud Computing Small to mid-sized (SMB) organizations recognize that specialized business solutions from Deltek help them win more business, increase visibility into their projects, and improve cash. Many organizations are adopting cloud-based versions of these solutions, such as Vision in the Cloud, as alternatives to traditional on-premise deployment and maintenance. Benefits of these cloud-based solutions include the ability to focus limited IT resources on core business value, rather than on managing a complex IT infrastructure. In addition, organizations can use operational budgets rather than incurring significant upfront capital costs because cloud-computing eliminates the need to buy, deploy and manage IT infrastructure and solutions. Deltek takes responsibility for everything: servers, storage, operating systems, databases, business software, updates, migration, power and cooling, data center space and support services. Customers simply pay an ongoing subscription fee. Despite the substantial benefits, organizations considering cloud-computing ERP implementations are often concerned with the quality and reliability of the cloud services. Often there are feelings that we can do it better inhouse. Just as your Customers choose you because you are the experts at what you do, Customers rely on Deltek because we are the experts at running and maintaining Deltek Solutions. 1

2 Even while we have achieved new state-of-the art capabilities, we have reduced our monthly costs and that makes Vision in the Cloud a clear choice."» Irina Kassil Controller, Brunsing & Associates Vision in the Cloud: Higher Quality, Less Risk, Faster Time to Value and a Lower TCO The real problem is not that cloud-based solutions are more expensive than on-premise solutions, rather that potential customers do not take into consideration the full costs involved in implementing an on-premise solution. SMB organizations need to make a comprehensive accounting of the costs of an on-premise solution versus a subscription-based cloud solution to make a true apples-to-apples comparison. The following analysis will demonstrate that the economies of scale inherent in a cloud solution mean that cloud vendors can deliver a higher quality infrastructure with less risk and a shorter time to value all at a cost that is comparable or even lower than an on-premise solution. Higher Quality Cloud computing vendors, such as Deltek, support their customers on a shared infrastructure, rather than as separate, individual environments for each customer. By optimizing solutions for this shared environment, cloud vendors can achieve efficiencies throughout the solution lifecycle that would be difficult for organizations implementing an on-premise solution to achieve and can deliver a higher- quality solution than organizations can typically implement on premise. In particular, cloud vendors deliver: Up-to-date and OptimizedSystems Organizations with on-premise solutions may let upgrades slide or skip them altogether because they don t have the resources to keep up with them. Cloud based systems take advantage of the most up-to-date hardware and software. A fully optimized infrastructure means that the solution will provide better performance compared to an on-premise solution that has not been optimized. At the same time, customers always have access to the latest versions of the software while customer-specific configurations are maintained. Latest Security Deltek First cloud solutions deliver a highly secure data center with the most sophisticated physical, technical and operational security available. Customers benefit from 24/7 monitoring with complete physical security, UPS and diesel backups, colocation and redundant data. Personnel undergo rigorous security training and are covered under strict confidentiality agreements. Responsibilities and segregation of duties are formally documented and evaluated regularly. Data is secure as well since systems are protected by the most complete and current malware and anti-virus security. Ongoing Monitoring A dedicated cloud operations team constantly monitors availability and application health so they can proactively prevent any emerging problems from impacting customers. Availability and Disaster Recovery Many organizations may find it too expensive to build the optimal levels of redundancy into their systems only to regret the decision in the wake of disaster. Deltek s technical and operational architecture is designed to avoid any single point of failure. All infrastructure is shared, and redundant data centers provide full failover capability. Backups are completed daily (near real-time in the case of accounting data) to a separate facility. 2

3 "Our decision was based on a number of factors; we have limited in-house IT resources, the cost savings from not having to manage our solution on-site will be significant over the next number of years, and we are now able to stay current with the latest releases. Now that we are on the cloud, we are realizing significant savings, not to mention the comfort level of having Deltek manage our solution."» Gail Macejkovic Groth Design Group Scalability On-premise scalability might require organizations to over purchase hardware and other infrastructure capabilities in anticipation of increased demand which adds to their CapEx costs. Deltek s hardware, software, networking and storage technologies are refreshed, updated and expanded to provide maximum scalability and speed. When customers need to scale their systems, they can simply add users without having to purchase more powerful hardware and supporting infrastructures. Less Risk With on-premise solutions, organizations must manage numerous risks internally, often with limited resources. These risks include: Application Availability Risks--If only one person within a firm understands how to manage a particular application and that person goes on vacation or leaves the firm, the organization that needs the application available at all times faces significant risk. Security Risks--Sensitive data may not be encrypted while hardware and software assets may not be secure, leaving valuable information vulnerable to intrusion or theft. Hardware storing sensitive company data may have USB ports that provide a simple way for someone to leave the building with sensitive company data. Companies may not have the staff to stay abreast of all operating system security updates or keep firewall and malware software current (if deployed at all). Staff may not be trained in the latest security practices or threats. Business Continuity Risks--A natural disaster, such as a flood, earthquake or fire, can damage hardware and bring operational processes to a standstill. Deltek s cloud-based solution ameliorates these risks for the customer. Deltek incorporates state-of-the-art business continuity and disaster recovery into our solution. Our staff is available 24X7X365 to cover our customers IT maintenance and support requirements. They are continuously trained in the most current security procedures. Because we take care of these details, customers minimize the risk inherent in supporting and securing an ERP offering. Faster Time to Benefit Even the easiest to install and configure on- premise solutions take weeks or months to deploy. Organizations can be up and running on a Deltek First cloud implementation in a matter of days. As a result, cloud based solutions deliver a faster time to benefit, which improves overall return on investment. Same or Lower TCO When looking at costs, many customers compare the full subscription cost of a cloud solution with only the hardware and software costs required for an on-premise solution. Based on this analysis, they may conclude that the cost of the cloud solution over a five year period is higher. Yet their cost estimates often fail to include the entire cost of purchasing and maintaining an on-premise solution. The full costs of such a solution include the following: Hardware and Software Acquisition When organizations implement an on-premise solution, they must purchase the necessary hardware and software, incurring one-time capital costs for: Server hardware Operating system software depending on the server hardware purchased, the operating system may or may not be included. Firewalls Database software license Business application software license. Costs are often calculated based on the number of users. Backup software 3

4 "This allowed us to stay on the current version and gave us peace of mind, knowing that our data was secure and always backed up. The cost savings has been significant as the subscription fee is similar to the maintenance costs and allowed us to delay the cost of a new network server."» Tim Lynch Lynch & Associates With Deltek First, these costs are all included in the price of the subscription. Installation and configuration With an on-premise solution, an organization incurs labor costs for design and implementation costs that are rolled into the subscription cost of a cloud solution. These costs for on-premise solutions include: Detailed design Design costs include the time and labor cost (of either staff or consultants) to define project objectives and scope; detail existing processes; identify process gaps and data sources; document business requirements; and develop the final project plan. Configuration and deployment Configuration and deployment costs encompass all the time and cost associated with deploying the hardware and software, including installing the hardware, operating system, database and software; configuring backup software; and configuring the application software. Ongoing Maintenance and System Management Organizations with on-premise solutions must also maintain and manage their systems over the long term tasks that are once again incorporated into a cloud subscription fee. Ongoing costs include: Server maintenance and upgrades IT staff must perform routine hardware maintenance. In addition, as the number of users and amount of data grows over time, companies need to buy additional server hardware to accommodate them. Software maintenance-- organizations pay ongoing annual maintenance fees for database, application, and backup software. In addition, most backup software vendors charge for licenses based on capacity. Since most industry analysts have found that data volumes for organizations tend to grow by 20 to 40 percent year over year, annual increases in backup software license fees average 30 percent annually. Ongoing maintenance fees for backup software also increase with additional capacity. Patch and upgrade database, application, and backup software IT will need to install patches as they become available. Additionally, upgrading to the latest version requires organizations to install and configure the upgraded software. Maintain, patch and upgrade security hardware and software Security solutions include firewalls, intrusion detection/ prevention software (IDS/IPS) as well as software that protects against mal ware and viruses. Like other software, security software requires ongoing maintenance fees, the time and cost of patches and of purchasing and installing upgrades. Business application support organizations need IT staff to support business applications. Disaster recovery planning IT organizations must develop processes, policies and procedures to prepare for recovery after a natural or human-induced disaster. TCO Example The chart on the following page provides a real- world example of the time and costs required to implement an on-premise solution compared to those for a cloud-based solution. As this analysis reveals, when the full costs are considered, a cloud-based implementation delivers a lower total cost of ownership. At the same time, the time to revenue is faster, since cloud solutions take days versus more than a month to implement. 4

5 100 employee firm example 5

6 Conclusion Using the cloud-based Deltek First solution, Professional Service Firms gain all the benefits of a Deltek on-premise solution including the ability to win more business, increase visibility into projects, and improve cash. At the same time, customers benefit from a higher quality solution than they are likely to implement on-premise they can take advantage of the most up-to-date hardware and software, better security, high availability, as well as scalability. Risk is lower for customers because the service provider absorbs risks. Time to benefit is much faster customers can access cloud solutions in days rather than weeks. At the same time, total cost of ownership is the same or even less than an on-premise solution. 6

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