Cloud-Based Technology: Identifying Key Opportunities for Retail

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1 RIS Thought Leadership Series Cloud-Based Technology: Identifying Key Opportunities for Retail Cloud-based solutions are already being used by a growing number of retailers to support their most important business functions including the mission-critical point of sale. While some concerns remain about data security and application uptime, there's significant movement within the retail industry toward cloud-based, on-demand solutions, and it's easy to see why. Unlike many other technologies that retailers have had to adapt to meet their business needs, it's as if cloud computing was designed specifically with the cost-conscious, data-deluged retail enterprise in mind. Retailers can achieve savings from lower initial capital expenditures, and the usage-based pricing model used by most cloud-based applications aligns well with the spiky, seasonal nature of the retail business. Cloud-based technologies also provide the flexibility to scale up quickly, supporting IT deployments for everything from pop-up stores to more permanent expansions, and to scale down just as quickly when business conditions change and a new approach is needed. INSIDE: 2 Clouds Cut Up-Front Costs 5 Clouds Lighten IT Footprint 7 Increased Computing Power Enhances Data Analysis 9 Clouds Boost Business Agility SPONSORED BY:

2 RIS THOUGHT LEADERSHIP SERIES CLOUD-BASED TECHNOLOGY: IDENTIFYING KEY OPPORTUNITIES FOR RETAIL What s at Stake for Retailers Cloud-based solutions for both consumer and business applications are achieving higher profiles, and they are already being used by a growing number of retailers to support their most important business functions including the mission-critical point of sale. While some concerns remain about data security and application uptime, particularly after a few well-publicized service disruptions with Amazon's public cloud, there's significant movement within the retail industry toward cloud-based, on-demand solutions, and it's easy to see why. Unlike many other technologies that retailers have had to adapt to meet their business needs, it's as if cloud computing was designed specifically with the costconscious, data-deluged retail enterprise in mind. For retail CIOs seeking a quick ROI payback from any proposed new initiative, adopting cloud-based solutions offers almost immediate cost savings. Not only is there less need for up-front capital investment in hardware, software and deployment, but these ondemand solutions are typically available on a per-usage basis, similar to the way electricity or other utilities are priced. Operating in a highly seasonal industry, retailers have typically had to make IT investments sufficient to support their busiest times. In contrast, per-usage pricing opens the door for retailers to literally use as much of an application as they need at any given time, achieving savings during less busy times. T A K E A W A Y Clouds Cut Costs: Cloud-based solutions require less up-front capital investment, and their per-usage pricing model fits well with the spiky, seasonal nature of retail. In addition, this pricing model allows retailers to move many IT costs from the capital expenditures budget line to the operating expenditures line, which can work better from an internal financial standpoint and also free up CapEx funds for other IT projects. But most industry experts, along with retailers that have already adopted cloud solutions, agree that cost savings are only their most obvious benefit. While using cloud-based solutions doesn't eliminate the need for retailers to integrate these applications into their existing IT architecture, their expanded availability does offer new levels of flexibility and speed to market. IT departments can scale up support for a new retail store or distribution center in far less time than traditional application architectures would have needed. For example, the pop-up store phenomenon, with retailers taking advantage of low commercial lease rates to either sell seasonal items or try out a retail concept for a limited time, is made vastly simpler if point-of-sale, back-office, inventory, pricing, time-and-attendance and store operations solutions are available virtually overnight, and remain available as long as the store retains a broadband connection to the Internet. On a broader scale, retailers expanding domestically and even internationally can enter new territories more rapidly and with a lighter IT footprint than was previously possible. By lowering the costs and complexities of geographic expansion, cloud-based solutions give retailers more room to experiment in unfamiliar markets. If a retailer discovers that a marketing program that had been successful in its home country isn t gaining traction in a new area, the costs of changing the program (at least from an IT perspective) will be considerably lower if its supporting applications are being delivered via a Software as a Service (SaaS) model. In today s retail environment, business and IT requirements can change rapidly and sometimes unexpectedly, so retailers are looking for solutions that can scale up and scale down quickly, with minimal cost and risk, says Joe Skorupa, Group Editor-in-Chief, RIS News. Cloud-based solutions are offering the kind of flexibility retailers have sought for a long time, combined now with greater availability and a wider range of applications. Skorupa adds that retailers interest in both SaaS and cloud computing has risen rapidly. According to the RIS/Gartner 2011 Retail Technology Study, one-third of retailer respondents are using on-demand or SaaS models as part of their architecture approach to software, and nearly half that number are using cloud computing solutions. In 2009, cloud computing was not even on our list and this year it was chosen by 15.3% of respondents, which is a noteworthy figure for a still-emerging technology, says Skorupa. And interest in SaaS has more than doubled, rising from 14% in 2009 versus 33.3% this year. Applying More Power to Big Data It s often said that retailers have more data than they know what to do with, a statement that has only become truer as mobile technology and social media add customer touchpoints and data 2 Cloud-Based Technology: Identifying Key Opportunities for Retail RIS Thought Leadership Series

3 sources to those coming from stores, call centers, kiosks and e- commerce. Many retailers would like to use more of this data to gain greater insights into customer behavior and demand patterns, but one of the barriers has been the enormous IT investment required for both hardware and software capable of turning these oceans of data into insights within a reasonable time frame. In addition to lowering costs, mitigating risk and increasing flexibility, the cloud computing model expands access to the kind of massive computing power that s been used to, for example, model global climate change. Public clouds combine multiple servers while spreading the costs among their hundreds or thousands of users. Retailers can use this computing power on an as-needed basis, gaining the benefits of deep data analysis without having to invest in technology that they might use for only a few days each week or each month. The ability to store, aggregate and combine data and then use the results to perform deep analyses has become ever more accessible as trends such as Moore s Law in computing, its equivalent in digital storage, and cloud computing continue to lower costs and other technology barriers, according to the May 2011 McKinsey Global Institute report Big Data: The Next Frontier for Innovation, Competition and Productivity. This report defines big data as datasets whose size is beyond the ability of typical database software tools to capture, store, manage, and analyze. While this definition will vary by industry, big data in many sectors today will range from a few dozen terabytes to multiple petabytes (thousands of terabytes). T A K E A W A Y Budgeting Benefits: Utility-style pricing of cloud-based applications allows retailers to move these IT costs from the capital expenditures budget to the operating budget, with the savings freeing up CapEx funds for other projects. Defining Cloud Computing Despite any weather metaphors it attracts, cloud computing has nothing to do with meteorology. It got its name from the cloud graphics used to represent any off-premise computing area, in this case the Internet. Cloud computing allows users to obtain computing capabilities through the Internet, regardless of their physical location. Computing clouds are in essence online, supersized data centers containing hundreds of thousands of servers hosting web applications. Cloud services from raw infrastructure to complete business processes can be purchased through web interfaces and turned on and off as they are needed, write Michael Mojica, Jeff Stephenson and Alan Healey in the May 2010 Accenture report, Six Questions Every Retail Executive Should ask About Cloud Computing. The report adds that the characteristics of cloud services include: Little or no capital investment Variable pricing based on consumption; buyers pay-per-use Rapid acquisition and deployment Infinitely scalable Lower ongoing operating costs Cloud computing s viability for business IT has been driven by the Internet s global penetration along with higher broadband penetration, enabling faster and easier Internet access, along with an ongoing rise in bandwidth connectivity speeds. Increased use of virtualization, which creates a virtual (rather than an actual physical) version of an operating system, a server, a storage device or network resources, has also raised comfort levels with using IT solutions that are not literally within the four walls of a store. There are public clouds, which take advantage of massed servers to lower all participants costs and are essentially available to anyone; Amazon Web Services is currently the largest public cloud provider. There are also private clouds maintained by a company or group of companies, as well as public/private hybrids. Cloud-based services are broadly divided into three categories: Infrastructure as a Service (IaaS), Platform as a Service (PaaS) and Software as a Service (SaaS). Applications designed for traditional distribution methods can be adapted for cloud delivery, but many technology vendors are now designing solutions that specifically optimize cloud-based models. RIS Thought Leadership Series Cloud-Based Technology: Identifying Key Opportunities for Retail 3

4 RIS THOUGHT LEADERSHIP SERIES CLOUD-BASED TECHNOLOGY: IDENTIFYING KEY OPPORTUNITIES FOR RETAIL T A K E A W A Y Enhancing Expansion: Cloud-based solutions allow retailers to open new locations more quickly and to enter new territories with a lighter IT footprint than existing deployment models. Among the potential uses of big data are segmenting populations to customize actions. Big data allows organizations to create highly specific segmentations and to tailor products and services precisely to fit those needs, says the McKinsey report. Even consumer goods and service companies that have used segmentation for many years are beginning to deploy ever more sophisticated big data techniques such as microsegmentation of customers to target promotions and advertising. Another use of big data that could be leveraged with a cloud computing architecture model is replacing/supporting human decision-making with automated algorithms, including the automatic fine-tuning of inventories and pricing in response to realtime in-store and online sales. In some cases, decisions will not necessarily be automated but augmented by analyzing huge, entire datasets using big data techniques and technologies rather than just smaller samples that individuals with spreadsheets can handle and understand, the report notes, adding Some organizations are already making better decisions by analyzing entire datasets from customers, employees, or even sensors embedded in products. The cloud s combination of expanded computing resources and delivery to virtually any Web-connected device adds the possibility of using its solutions to conduct real-time analyses. Scenario modeling, what-if analysis, and forecasting, which are lumpy, data-intensive processes, are great candidates to be served by cloud-based solutions, write Michael Mojica, Jeff Stephenson and Alan Healey in the 2010 Accenture report, Six Questions Every Retail Executive Should ask About Cloud Computing. Customer programs, marketing, merchandising, and pricing all stand to benefit greatly from such capabilities. ARCHITECTURE APPROACH TO SOFTWARE Best of breed software Integrated solutions suites In-house IT resources to develop software Third-party services to help develop software 57.7% 52.3% 50.4% 44.1% On-demand or SaaS models 33.3% Cloud computing solutions 15.3% 0% 10% 20% 30% 40% 50% 60% Source: RIS/Gartner 2011 Retail Technology Study During the past two years, interest in on-demand or SaaS models has more than doubled, rising from 14% to 33.3% in Cloud computing s rise has also been rapid; it was not even on the list in Cloud-Based Technology: Identifying Key Opportunities for Retail RIS Thought Leadership Series

5 INDUSTRY INSIGHT Cloud Solutions Cut Global Expansion Costs Significantly LOU CHAPPUIE, DIRECTOR, DELL BOOMI SOLUTIONS Q: Are there conditions specific to the retail industry that make cloud-based solutions particularly attractive, such as the increasingly global nature of the business? LOU CHAPPUIE: In any case where there are disparate data sources worldwide, using a cloud-based solution means essentially just activating an account and achieving integration over the Web. The time and cost of expanding geographically plummets radically compared to a traditional infrastructure, and the cloud gives retailers the ability to quickly open and expand their operations. Q: Can you give me some specific examples? CHAPPUIE: We ve seen four strong use cases for cloud computing in retail. The first involves back-office systems for supply chain, organizational and business processes. Retailers are now asking whether they need to purchase and install systems and hire a staff to maintain these. A number of companies are using our technology to simply bring their back-office solutions data together on the cloud. The second use case involves EDI [electronic data interchange]. Typically, retailers wanting to use EDI would have needed to invest in solutions that allowed them to integrate into an existing B2B gateway, and it was often a challenge to get the data back into their systems. GoPro, a manufacturer of wearable cameras and accessories that it sells online, is an example of a growing company that needed to quickly provide EDI in order to connect other retailers to its cloud-based NetSuite ERP solution. The third use case involves POS systems, particularly for a retailer that is expanding with quick openings on a worldwide basis. With traditional integration approaches, it s been hard to share information among these geographically disparate entities. The fourth use case involves trading partner enablement. There had been no easy solution for connecting with a trading partner in China that didn t involve physically installing software or using a B2B gateway, but now retailers can easily connect with all their trading partners via a cloud-based approach. Q: What are some of the other benefits retailers are seeing with cloud-based solutions? CHAPPUIE: A challenge retailers have always faced with investing in and maintaining an IT infrastructure in-house is that they must plan for peak loads which means that at some times they re not using their systems to their full capacity. But if you use a cloud-based solution, you immediately get the ability to scale up and scale down your operations, while paying a stable fee for the capacity you need because it s shared across everyone using the cloud solutions. This is particularly important for small retailers, because it democratizes the benefits that a typical large-scale retailer could get from their systems. Now, for a simple subscription-based price, these smaller retailers can purchase the same level of efficiency as the larger retailers right out of the gate. NOW, FOR A SIMPLE SUBSCRIPTION-BASED PRICE, THESE SMALLER RETAILERS CAN PURCHASE THE SAME LEVEL OF EFFICIENCY AS THE LARGER RETAILERS RIGHT OUT OF THE GATE. Lou Chappuie, Director, Dell Boomi Solutions Q: What kinds of questions should retailers be asking with regard to data security with cloud-based solutions? CHAPPUIE: Most of it starts with research on the companies themselves are they known and reputable? If the information is in data centers, how secure are they? Is there redundancy and backups? Do they use biometric scanning to protect access to the data? These are the same questions retailers should ask about any data solution: where is the data going, how is it being used, how is it being safeguarded, and what privacy protections are in place. RIS Thought Leadership Series Cloud-Based Technology: Identifying Key Opportunities for Retail 5

6 RIS THOUGHT LEADERSHIP SERIES CLOUD-BASED TECHNOLOGY: IDENTIFYING KEY OPPORTUNITIES FOR RETAIL EXAMPLE OF HOW SCOPE AND RESPONSIBILITY MAY DIFFER BY TYPE OF CLOUD SERVICE Type of Cloud Service Area of Resposibility IAAS PAAS SAAS Data Software, user applications Operating systems, databases Virtual infrastructure (hypervisor, virtual appliances, VMs, virtual networks, etc.) Computer and network hardware (processor, memory, storage, cabling, etc.) Data center (physical facility) Cloud customer responsibility Cloud service provider responsibility Source: PCI DSS Virtualization Guidelines, June 2011 This is one example of how scope and responsibility for cloud service offerings can be divided between cloud service providers and customers. The PCI guidelines recommend that all cloud service offerings should be individually reviewed to determine how responsibilities between the provider and customer are assigned. T A K E A W A Y Empowering Analytics: The massed computing power available through public clouds gives retailers the ability to analyze their ever-expanding data sets, in some cases in real time. Addressing Security Issues The nagging questions about cloud computing have to do with security and application uptime. Retailers use a number of mission-critical IT solutions, most notably the POS, and CIOs may be concerned about trusting their operation and support to an architecture that is outside the four walls of the retail enterprise. This latter concern was highlighted by some recent well-publicized service disruptions of Amazon's public cloud. While acknowledging that no IT architecture can guarantee full 100% uptime, cloud proponents say that the use of multiple servers and data centers offers higher redundancy levels than would be possible with a single enterprise-operated data center. In addition, data security is a concern no matter what type of IT architecture a company uses. Retailers traffic in Personally Identifiable Information (PII) about their customers as well as financial and transactional data, not to mention sensitive proprietary information about prices, promotions and their own interactions with vendors and suppliers. Experts say the move to a cloud computing model can actually be a catalyst for assessing and addressing security concerns throughout the retail enterprise. Retailers can establish different levels of data that require different security restrictions. These 6 Cloud-Based Technology: Identifying Key Opportunities for Retail RIS Thought Leadership Series

7 INDUSTRY INSIGHT Cloud s On-Demand Computing Power Supercharges Data Analysis RAFAEL GONZALEZ CALONI, EXECUTIVE VICE PRESIDENT, MARKETING, PREDICTIX Q: What are some of the immediate benefits a retailer would see by implementing a cloud-based solution? RAFAEL GONZALEZ CALONI: You can take pretty much any traditional, behind-the-firewall application available today and, by hosting it on the cloud, achieve a number of cost and operational savings almost immediately. You don t have to buy a lot of hardware for application deployment, you don t need as many in-house operational resources and you save on electrical and cooling costs. These benefits are clearly important for the retail CIO, because achieving cost efficiencies is key for them. But the truly important benefits come with applications that are specifically designed for the cloud, because they allow you to mine data much more intensively than you can with a traditional solution. In a traditional retail IT environment, there are always trade-offs in terms of how much science or computing power you ll use to solve a given problem. You might go out and buy a $5 million machine that crunches numbers, but it might only be used for a few hours out of the week. But now we re in a world where retailers are getting so much more data and different kinds of data that it s difficult to analyze it in all the ways you would want to, if you were still using older software and the one big machine you had bought. Even retail winners say they still struggle with some basic forecasting issues, and that s not surprising in a world where you re bound by expensive computing power. However, you can absolutely solve this if you get on-demand access to 100 servers for a four-hour period. The only people who were previously able to access this kind of massive computing power were the ones building large-scale climate models, but now through the cloud it s at a retailer s disposal. As a result, Predictix can apply much more powerful science to highly complex forecasting problems and THE ONLY PEOPLE WHO WERE PREVIOUSLY ABLE TO ACCESS THIS KIND OF MASSIVE COMPUTING POWER WERE THE ONES BUILDING LARGE-SCALE CLIMATE MODELS, BUT NOW THROUGH THE CLOUD IT S AT A RETAILER S DISPOSAL. Rafael Gonzalez Caloni, Executive Vice President, Marketing, Predictix scale up resources in a matter of minutes, not weeks or months. Our retail clients are seeing concrete results, and seeing them quickly: eliminating excess inventory, reducing both overstocks and stockouts, increasing sales and margins. Q: Are there other elements of cloud computing that fit well with today s retail environment? GONZALEZ CALONI: Yes, because not only is the data exploding, retail itself is in flux. Retailers have moved from only having to worry about what was in the store and how it sold each week to having much more complex relationships with consumers. Who would have thought two years ago that Facebook would be an emerging e-commerce channel? Solutions designed for the cloud offer elasticity, allowing you to evolve your business quickly and incorporate new channels, demand signals and touchpoints. Using cloud solutions also helps with the pop-up store phenomenon. Because of the availability of commercial real estate, retailers are seeing these as a sensible part of their ongoing strategy, particularly for seasonal items. The ability to double your store count for a limited amount of time by bringing all of your IT up on the cloud and then bringing it down offers retailers a big advantage. RIS Thought Leadership Series Cloud-Based Technology: Identifying Key Opportunities for Retail 7

8 RIS THOUGHT LEADERSHIP SERIES CLOUD-BASED TECHNOLOGY: IDENTIFYING KEY OPPORTUNITIES FOR RETAIL can range from low-level data suitable for a public cloud infrastructure with simple password access to ultra-secure data requiring dedicated secure servers housed in ultra-secure data centers with strong authentication required for access. In the specific area of payment data, the PCI Security Standards Council recently released its PCI Data Security Standards Virtualization Guidelines. While the document offers only guidelines, not specific requirements, it does provide detailed information on questions retailers should ask, and steps they should take, to maximize security in virtual and cloud environments. The guidelines identify public clouds as requiring additional controls to compensate for the inherent risks and lack of visibility into the public cloud architecture. A public cloud environment could, for example, host hostile out-of-scope workloads on the T A K E A W A Y Security Counts in the Cloud: Retailers need to ask their cloud providers tough questions about all aspects of data security and application availability, and some public clouds may be less than optimal for meeting PCI DSS compliance standards for cardholder data. same virtualization infrastructure as a cardholder data environment [CDE]. More stringent preventive, detective, and corrective controls are required to offset the additional risk that a public cloud, or similar environment, could introduce to an entity s CDE. These challenges may make it impossible for some cloud-based services to operate in a PCI DSS compliant manner, the guidelines continue. Consequently, the burden for providing proof of PCI DSS compliance for a cloud-based service falls heavily on the cloud provider, and such proof should be accepted only based on rigorous evidence of adequate controls. Seven Security Recommendations The Accenture Six Questions report provides seven security recommendations for companies considering a cloud deployment: Work with your provider to determine its attention to security, privacy and compliance with data laws in all relevant jurisdictions. Make sure the provider can achieve parity or better levels of security, privacy, and compliance with law than you have today. Remember that the security of the cloud should be equal to the most risky client that is serviced by the provider. Rigorous risk assessment is a complex undertaking that represents the key to effective security in the cloud. Require your cloud computing partner to provide you with its risk assessment and how it intends to mitigate any issues found. If the cloud provider does not have a seasoned Privacy Officer and a client-facing CSO, CISO, or equivalent security role, be very careful. It is a sign that the provider doesn t take security seriously enough. Schedule mandatory monthly discussions with the cloud provider s top privacy and security people. This discussion should flow both ways with no hidden items. The cloud provider should have the ability to map its policy and procedures to any security mandate or security/privacy/compliance-driven contractual obligation you face. Pay attention to your cloud provider s adherence to secure coding practices. Conclusion Cloud-based solutions may require a sharper security focus than existing applications, but they are not alone: for example, increased use of mobile devices within enterprises raises a number of security concerns, from the threat of unauthorized wireless access to the actual physical control of smart devices and tablets. No matter what IT architecture they use, retailers need a comprehensive approach to data security that meets compliance standards and mitigates overall risk. What cloud-based solutions do provide is a powerfully appealing combination: cost savings with much higher levels of IT and business flexibility than retailers have been accustomed to. Then there s the added bonus of significantly increased computing power to handle the continuing expansion of data and feed the growing hunger for insights from that data. Cloud-based solutions are just starting to sprinkle their benefits on the retail industry, and there are strong indications that these showers will quickly grow into a downpour and that more and more retailers will like this change in the weather. 8 Cloud-Based Technology: Identifying Key Opportunities for Retail RIS Thought Leadership Series

9 INDUSTRY INSIGHT Cloud Solutions Provide Unprecedented IT and Business Agility RAVI BAGAL, VICE PRESIDENT, RETAIL AND DISTRIBUTION, VERIZON Q: In addition to the immediate benefits a retailer can realize by moving to cloud-based solutions, what are some of the subtler or longer-term benefits you see? RAVI BAGAL: Retail CIOs are always looking for projects that essentially fund themselves providing them with hard benefits up front but then allowing the retailer to do things differently than before. The cloud is the paradigmatic example of a technology that pays for itself up front and then creates long-term strategic flexibility. For example, if a retailer starts putting all their store-based technology and traditional customer-facing touchpoints onto the cloud, why wouldn't the retailer co-locate their systems driving e-commerce, and especially the mobile channel, into the cloud as well? The traditional barriers to this kind of omni-channel approach, of being able to serve customers wherever they come to you, have been the integration and interoperability of the physical systems driving store, Web and mobile commerce. But retailers need to understand that migration to the cloud isn't just a physical migration of technology; it's a conceptual migration to a single source of truth about customers, products, promotions, etc. The cloud represents a natural evolution to this kind of truly omni-channel view of the consumer experience. Q: People have talked about cloud-based solutions facilitating faster expansion, either into pop-up stores or totally new geographies. Are there similar 'big' benefits in these areas? BAGAL: One of the historical struggles for retailers expanding globally is that they don't know what they don't know. So from the technology standpoint, they try to 'forklift' what they do know into these new territories. That has meant making huge, five-year projections about what their IT requirements are going to be. But with the cloud, retailers can be more nimble and experimental. They can go into a new geography with only what they need for their initial foray, then start experimenting and learning about what's going on there to make the changes that are needed. Retailers want to be in Beijing, Sao Paolo and Kuala Lumpur and fulfill their brand promise there, but inevitably the way they execute it in each of these places will be different. With the cloud they can make the changes that are required because they haven't made the giant, multi-year, battleship-size IT commitments that formerly would have been required. It's a big way to reduce the risks and barriers to globalization. And in a perfect world, if the retailer has guessed right about what kind of IT is needed in these new geographies, they can expand more quickly, because they will already have empirical proof that the solutions will work there. They don't have to hedge their bets. "WITH THE CLOUD, [RETAILERS] CAN MAKE THE CHANGES THAT ARE REQUIRED BECAUSE THEY HAVEN'T MADE THE GIANT, MULTI-YEAR, BATTLE- SHIP-SIZE IT COMMITMENTS THAT FORMERLY WOULD HAVE BEEN REQUIRED." Ravi Bagal, Vice President, Retail and Distribution, Verizon Q: That sounds like it could have IT implications "at home" as well. BAGAL: Unfortunately, traditional retail architectures have often acted as a set of handcuffs, because retailers have had to make these incredible huge forward bets. The CIO thinks 'I made a decision three years ago, and I have to live with that decision, with very little variability, because I sank so much cost into it.' But the cloud liberates them to make business decisions based on the merits, rather than the limitations of what they thought was going to be real three years ago. RIS Thought Leadership Series Cloud-Based Technology: Identifying Key Opportunities for Retail 9

10 RIS Thought Leadership Series CLOUD-BASED TECHNOLOGY: IDENTIFYING KEY OPPORTUNITIES FOR RETAIL ABOUT DELL BOOMI Dell Boomi is the market-leading provider of on-demand integration technology and the creator of AtomSphere, the industry's #1 Integration Cloud. AtomSphere connects providers and customers of SaaS, cloud and onpremise applications via a pure SaaS integration platform that does not require software or appliances. ISVs and businesses alike benefit by connecting to the industry's largest network of SaaS, PaaS, on-premise and cloud computing environments in a seamless and fully self-service model. Leading SaaS players and enterprise customers such as salesforce.com, NetSuite, RightNow, Marketo, Taleo, Zuora, Coupa, NASDAQ and Web MD rely on AtomSphere to accelerate time to market, increase sales, and eliminate the headaches associated with integration. Retailers leveraging AtomSphere are able to automate and efficiently scale business processes to increase productivity, reduce data errors and gain a true 360 degree view of their customers, without enlisting additional resources. For more information, visit ABOUT PREDICTIX Retailers, wholesalers and brands make better forecasting, planning, assortment, pricing, and replenishment decisions with the Predictix merchandising software suite. Our clients get started quickly and see value early thanks to our cloud-based solutions and our agile approach to delivery. Our predictive technology is more accurate and drives better decisions in today s changing environment. Building on our executive team s experience in leading well-known retail technology companies, we ve developed our software from the ground up so our clients can completely tailor and readily adapt it as their business needs change. With no hardware to buy, software to install, or long-term commitments to make, we are changing the way our clients invest in and get value from technology. Learn more at ABOUT VERIZON Verizon Communications Inc. (NYSE, NASDAQ:VZ), headquartered in New York, is a global leader in delivering broadband and other wireless and wireline communications services to mass market, business, government and wholesale customers. Verizon Wireless operates America's most reliable wireless network, with more than 104 million total connections nationwide. Verizon also provides converged communications, information and entertainment services over America's most advanced fiber-optic network, and delivers seamless business solutions to customers around the world. A Dow 30 company, Verizon employs a diverse workforce of more than 196,000 and last year generated consolidated revenues of $106.6 billion. For more information, visit Verizon Retail is an IT consulting practice group focused on helping retailers simplify their IT infrastructure, better control costs, and protect their data and reputation, with the ultimate goal of better serving customers. The framework leverages Verizon s networking, managed IT and application solutions, specifically drawing upon Verizon s cloud computing and security offerings. For more information visit

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