1/12/11 THE VALUE OF OPERATING IN THE CLOUD INTRODUCTIONS THE VALUE OF OPERATING IN THE CLOUD

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1 THE VALUE OF OPERATING IN THE CLOUD INTRODUCTIONS Leo Yancey Vice President & General Manager, Enterprise Firm Segment Thomson Reuters Tax & Accounting Leo Yancey leads the Enterprise Firm Segment of Thomson Reuters Tax & Accounting, which encompasses the top 3,000 accounting firms in the U.S. He has been with Thomson Reuters since 1992 and has held a number of positions, including roles focused on customer support, sales, management and acquisition integration. Leo has been with Thomson Reuters through its transition from providing CDbased products to providing web-hosted solutions and he has also been heavily involved in the rollout of a number of products on Thomson Reuters Tax & Accounting s web-based ONESOURCE platform. Prior to joining Thomson Reuters, Leo worked in the Corporate Tax Department of J.C. Penney with a focus on Insurance taxation. Before that, he worked for Andrews, Carlow & McCollum as a staff accountant. Leo has an accounting degree from the University of Arkansas and is a Certified Public Accountant. THE VALUE OF OPERATING IN THE CLOUD Your next-generation clients won t be reliant on a desktop PC and paper. They've grown up using the web and mobile devices. The firms they'll reward with their business will be the firms that fit into their life and business styles. 1

2 THE VALUE OF OPERATING IN THE CLOUD This isn t just a client consideration. It also holds true for the next generation of accountants who will enter our industry and your business. THE VALUE OF OPERATING IN THE CLOUD Have you thought about where your clients and staff will come from in the future? Are you ready with the services and products they'll demand? If not, what are the changes you need to make to attract them? Cloud-based solutions will provide them with the technology they are expecting. WHAT IS CLOUD COMPUTING? InfoWorld: Cloud computing encompasses any subscriptionbased or pay-per-use service that, in real time over the Internet, extends IT's existing capabilities. Google returned 2.85M results on a search for definition of cloud computing Wikipedia: Cloud computing is Internet-based computing, whereby shared resources, software and information, are provided to computers and other devices on-demand. The term "cloud" is used as a metaphor for the Internet, based on the cloud drawing used... to depict the Internet in computer network diagrams as an abstraction of the underlying infrastructure it represents. sourceid=navclient&aq=0&oq=definition+of +clou&ie=utf-8&rlz=1t4skpb_enus368us368&q=definitio n+of+cloud+computing For our discussion today, it means Applications are hosted in a vendor-provided data center and firm staff users and firm client users access those applications via their Internet connection. 2

3 THOMSON REUTERS STRATEGIC APPROACH TO CLOUD COMPUTING THOMSON REUTERS TAX & ACCOUNTING ORGANIZATION Tax & Accounting is part of Thomson Reuters Professional Division and has two businesses serving the global tax and accounting market Thomson Reuters Professional Division $5.4 billion Legal $3.6 billion Tax & Accounting $1.0 billion Healthcare & Science $0.8 billion Workflow & Service Solutions $600 million Corporate Markets Professional Markets Business Compliance & Knowledge Solutions $400 million Global tax planning, compliance and integrated workflow solutions Note: Results from ongoing businesses Global tax and accounting information, certification and GRC solutions THOMSON REUTERS TAX & ACCOUNTING STRATEGY Tax & Accounting Vision Be the leading provider of integrated workflow, compliance and knowledge solutions to the global tax and accounting market of professional firms and corporations Core Strategies Extend Leadership Position in US Global Expansion Extend Tax & Accounting s leadership position by continuing to integrate products into increasingly comprehensive solutions Expand global technology suite and enter attractive, high-growth global markets 3

4 Thomson Reuters Strategy Develop products using a web-centric strategy. Focus on robust systems to handle complex calculations and concepts. Maintain deeply integrated suite focus while capitalizing on 3 rd party integration. Delivering field-based service in addition to phone, web, and options. Focus on consulting services to deliver best practices from actual market experience. THOMSON REUTERS CLOUD SOLUTION GATHER DATA (Portal) Applications Hosted by Thomson Reuters Integration DELIVERY TO REGULATORY BODIES (Workflow System) Practice Management People, Process, Data (Practice/Workflow System) Client-serving professionals ANALYZE DATA (Workpaper System) Visibility Into Processes Streamlined Data Collection and Data Management Flexible, Accessible Client Interface Security and Availability DELIVERY TO CLIENT (Portal) REVIEW, SIGN OFF (Workflow System) RETURNS, REPORTS, ETC. (Tax/Accounting Software). Integration and Management of Process, Data and Applications in a Web Delivered Environment THOMSON REUTERS CLOUD SOLUTION Applications Hosted by Thomson Reuters INTEGRATION Tax GoSystem UltraTax Audit Engagement CS Practice Management Practice CS Document Management GoFileRoom / FileCabinet CS Workflow Management FirmFlow Accounting / Write-Up Accounting CS INTEGRATION Client Management NetClient Applications Hosted by Thomson Reuters 4

5 INTEGRATION: OUT OF THE BOX GoSystem GoFile Room NetClient Calculate return Print to PDF Integration Store PDF return copy and other docs Status of process Status of client Integration Publish PDF return and other docs to client Client status passed back to GFR Integration moves PDF from GoSystem to GFR and stores it in the correct client file Integration moves docs from GFR to NetClient and passes status from NetClient to GFR INTEGRATION: CUSTOM Data Store Web Service - Data moves from source systems to central database when available in sources Tax Application Web Service - Data with no user handling needed (e.g. auto adjs) - Leverage tax application as needed for calcs Source Systems - Portals - Client docs - Elec files Data Storage (SQL) Reports & Workpapers Tax Analysis Web Service/Import - Data needs human analysis, moves to analysis workpapers - Sent to SQL and tax app after analysis Tax Application Data Update Web Service - If data changes, update Analysis Workpapers One client implementation resulted in an elimination of up to 75 mouse clicks per return from their prior process. INTEGRATION: DEVELOPED FOR THIRD PARTY DEVICES AND APPLICATIONS Mobile Applications Mobile CS (available via iphone today) Integrates with our Practice Mgmt Product Extend Advantage of Cloud Computing to Handheld Devices Scan and Fill Solutions Reduce manual data entry SurePrep, Copanion 15 5

6 WHAT DOES MOBILE MEAN? Mobile basically means access to systems from somewhere other than your desk Laptop ipad Smartphone The device can impact the experience Have to scale to the device Larger device may offer more sophisticated UI (doesn t mean small device can t deliver an effective UI) 16 MOBILE IS WHITE HOT! 23% of adults are in households with no land line 59% of adults are mobile web users Mobile web users will surpass desktop web users by 2014 Consumer devices have entered Your firm! 17 MOBILE IS WHITE HOT! 1.2 M ipad sales = 1M Units 28 Days iphone sales = 1M Units 74 Days PC sales = 1M Units The Value of Mobile: 7 Years Units 1M 800 K 600 K 400 K Mobility Productivity Convenience Service 200 K Days Years Mobile is Wow factor for your firm and your clients 18 6

7 THOMSON REUTERS WEB EVOLUTION 1999 First ASP Web Hosted Systems GoSystem Tax RS, Virtual Office 2001 Secure Client Portals 2002 Web Hosted GoFileRoom Document Management and Workflow 2008 Thomson Reuters SaaS delivery by Profiles of Use 2010 Virtual Client Office Mobile CS THOMSON REUTERS CLOUD SOLUTION Web Hosted, Scalable Systems Integration Concurrent User Access Single System for All Offices Web Services Data Exchange Delivering and managing the complexities related to web-hosted solutions is a core competency for Thomson Reuters. We ve been doing it since SO HOW DOES THE CLOUD IMPROVE THE FIRM? 7

8 FIRM BENEFITS Efficiency / Productivity Lower Cost of Ownership Cloud Solutions Data Security Client Interaction / Collaboration EFFICIENCY / PRODUCTIVITY One Firm Concept Common access to software Uniform policies and procedures Focus on what not where Balance Workloads Trade work based on availability Build teams based on expertise Focus on the need not where Staff & Partner Access anytime, anywhere Flexibility Focus on the work not where Cultural We re in a 24 x 7 world Clients and staff expect to work via the web Work is what you do, not a place you go COST OF OWNERSHIP How Does Cloud Computing = Economic Value For My Firm? Internal Costs Application infrastructure provided by vendor Vendor spreads infrastructure investment across thousands and thousands of users Application updates and maintenance responsibility of the vendor Pay for what you use Security & Risk Reduction Standards for hosting vendors provides a higher level of availability and data redundancy infrastructure than practical for a single firm to provide itself Centralized control of data and access to it Compliance with regulatory requirements related to data security 8

9 WHAT ABOUT IT STAFF? The Evolving Role of the Technologist More: Strategic technology planning for the firm Interfacing with vendors / business partners Project management Bandwidth management Less: Repetitive maintenance tasks Server management DATA SECURITY & PRIVACY State laws becoming more stringent! Seeing mandates that cannot be used to transfer client information that contain sensitive pieces of data (i.e. SSN). Privacy laws about protecting access to sensitive documents and files. Examples: 7216, Massachusetts CMR 17.00, Nevada Rev Stat It s not just about physical and electronic security Centralized control It s easier to establish and enforce policies for a cloud-based system than for a patchwork system of accounts, physical media and thumb drives. DATA SECURITY & PRIVACY Physical Security Tier IV facilities N+1 Redundancy Power Infrastructure SAS 70 and penetration testing Thomson Reuters Approach Application Security User Authentication Encryption Control Access and Permissions Audit trails Regulatory Compliance Focus on tackling regulatory requirements (e.g. 7216) Architectures enable quick adaptation and compliance of security and privacy regulations 9

10 CLIENT INTERACTION & COLLABORATION How Do Portals Benefit the Client Interaction Process? Client Available anytime, anywhere. People today have a 24 x 7 mindset and expect to do business via the Web Easy to transfer information to and receive information from CPA Security, peace of mind Firm Meets privacy and security standards where may not Avoid large file attachments filling up boxes Single source for client material Paperless Repository for critical information WHAT ARE CLIENT PORTALS? A portal is a gateway to a collection of electronic information and files that is accessible over the Internet via a CPA firm s website. Your clients access their customized web space through your website using their unique login and password, so security is preserved at all times Firm s Website Accounting Firm Client 10

11 SUMMARY ADVANTAGES OF CLOUD SOLUTIONS Low Start-Up Costs Anytime, Anywhere Access Reliable and Automatic Backup Systems Automatic Updates & Version Control Significantly Reduced IT Infrastructure High-Level Security Ensured Business Continuation Enhanced Client Experience 11

12 THE VALUE OF OPERATING IN THE CLOUD Are you up to speed on the impact of Cloud Computing and comfortable with your strategy to embrace it? If you're not quite there yet, don t worry. We are here to provide solutions for your firm and guide you every step of the way. 12