How To Understand Cloud Computing

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1 PRIVATE CLOUD Jarno van Hurne Product Marketing Director

2 Everybody is talking about cloud

3 Current ERP software deployments Type of ERP Software 11% On-Premise 33% 56% Software as a Service Cloud ERP ( Hosted and managed off-site) Source: Panorama s 2015 ERP Report Copyright 2015 Panorama Consulting Solutions BUSINESS SOLUTIONS BUSINESS REVIEW 2015

4 DIFFERENT CLOUDS

5 Current cloud trends Cloud differentiation: different service & deployment models Cloud adoption different per market Cloud leads to new business models Changed marketing mix Value chain consolidation and changed service composition The rise of the cloud eco-system & cloud integrators Cloud skepticism Privacy and Security NSA scandal Dependency Higher costs

6 Cloud: what s in it for you We ll see companies with large, on-premise ERP deployments begin to add more cloud-based, departmental applications and, in some cases, develop a two-tier strategy, with the second tier running in the cloud or moving to the cloud all together (IDC) Convenience Up and running fast, always up to date Anytime anywhere access Business continuity and security One stop shop Reduced cost Predictable monthly fee Flexible up- and down scaling of users and functionality Software, hardware, hosting, services included

7 Cloud: Convenience Flexibility Cloud deployments largely eliminate the need to deal with capacity and location You can be much more responsive to unforeseen events and business demands No hassle You have anytime, anyplace access to your information and applications. Always the latest version Built for user adoption Business continuity Reliability Security Performance

8 No Hassle: Improve Disaster Recovery About 8.6 million citizens lost electricity in the U.S. during the storm. $80K Savings of $80,000 over three years compared with maintaining DR capabilities in-house. Forrester 98% to 100% Availability for the solutions has gone from 98% to practically 100%. Forrester Global The existing infrastructure was not big enough to provide the needed global redundancy. Forrester

9 Value Value Cloud: Reduced Cost Software Large Operating Expenses Cloud Computing Automated Upgrades Cloud Computing Value Time Large Capital Expense & High Risk Upgrade Expense 53% of software projects cost 189% of original estimate 1 No Capital Expenses Average 51% ROI within 12 Months 2 1 Standish Group, Chaos Report Third-Party CustomerSat Research on 3,500 Salesforce.com customers, December 2008

10 Cloud: Reduced Cost Predictable monthly fee Flexible up- and down scaling of users and functionality Software, hardware, hosting, services included Time to value Opex instead of Capex, with risk transferred to the vendor 40%-60% Cooling costs will make up as much as 40% to 60% of a data center's electricity costs. (Hype Cycle for Data Center Power and Cooling Technologies, Gartner) 80% By 2018, 80% of enterprise data centers will place lowperformance unstructured data into public cloud storage, leaving only business-competitive capabilities on-premises. Gartner

11 Cloud: Conclusion Over the next months, most businesses will be focused on implementing a long-term cloud strategy. The question is no longer why cloud?, but rather how to integrate it into the existing business model. Questions to ask: How important is time-to-market for added functionality or new solutions? How important is it for your organization to maintain a sense of control? Does your organization have CAPEX constraints? How geographically dispersed is your company and needed solutions?

12 Disclaimer This document contains certain statements and expectations that are forward looking, and which are based on information and plans that are currently available. By their nature, such forward-looking statements and expectations generate risk and uncertainty because they concern factors and events in the future and depend on circumstances that may not occur. Unforeseen factors that could influence the statements and expectations may, for instance, be changes in expenditures by companies in the markets we operate in; economic, political and foreign exchange fluctuations; possible statutory changes; changes in salary levels of employees; or future takeovers and divestitures. Exact can therefore not guarantee the accuracy and completeness of such statements and expectations, nor that such statements and expectations will be realized. Actual results may differ materially. Exact refuses to accept any obligation to update statements made in this document. 12 BUSINESS SOLUTIONS BUSINESS REVIEW P2-2015

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