New to ERP? Are you looking to buy an on-premise ERP solution?
Key challenges with an on-premise ERP: What you want is not what you get! Big Fat ERPs High Upfront Human Capital Maintenance Upgrade Costs Cost of Software HardwareDatabase Operating System Developme nt Tools Reporting Tools Security Solutions Virtualizations
Getting an on-premise ERP is equivalent to buying a dairy for a glass of milk.
Are you using one of those "big fat on-premise ERPs?”
Are you feeling like a hostage...? 1. Never ending implementations 2. Paying AMCs before going live 3. Forced upgrades 4. High cost of manpower 5. Faster redundancy
Think simplicity. Think cloud. An effective alternative!
Introducing Cloud… Computing Services Online Software & hardware managed by 3rd parties at remote locations Access to information and computer resources globally Different Service models : – Infrastructure as a Service (IaaS) – Platform as a Service (PaaS) – Software as a Service (SaaS)
Type of Clouds Public cloud A Standard cloud computing model, in which a service provider makes resources, such as applications and storage, available to the general public over the Internet. Private cloud Established for a specific group or organization and limits access to just that group. Community cloud Shared among two or more organizations that have similar cloud requirements. Hybrid cloud Combination of at least two clouds, where the clouds included are a mixture of public, private, or community.
Cloud Models Software as a Service (SaaS) Accessed through a web browser Subscription-based model Platform as a service (PaaS) Delivery of a computing platform Solution stack as a service. Subscription-based model Infrastructure as a service (IaaS) Delivers computer infrastructure, typically a platform virtualization environment, as a service Subscription-based model
Software as a Service (SaaS)? Software delivered via browser SaaS eliminates: – Software Installation – Running apps on customer’s personal computers or Servers – Simplified maintenance, upgrades and support App delivery is closer to a one-to- many model than to a one-to-one model Scalable & flexible Saves time Saves money
SaaS Value Propositions: It’s about Flexibility More Than Cost Lowers Overall CostImproves Business Agility Source: April 2012 “The Changing Cloud Agenda” Base: Software-decision-makers who are using or are planning to use SaaS
Companies choose cloud computing to improve agility and speed How important were the following benefits in your firm’s decision to use SaaS? (4 or 5 on a scale of 1 [not at all a factor] to 5 [very important]) Source: Forrsights Software Survey, Q4 2011 Base: 920 Software-decision-makers who are using or are planning to use SaaS Agility and Speed Cost
Cost of Ownership | On-Premise vs. Cloud Software Licenses 9% Customization & Implementation43% Hardware26% IT Personnel14% Maintenance7% Training1% 68% Subscription Fee TCOTCO TCOTCO Source: Yankee Group Decision Note Technology Analysis 32%Customization Implementation & Training On-Premise SoftwareCloud Computing 77% less than On-Premise “Customers can spend up to four times the cost of their software license per year to own and manage their applications.” – Gartner, “The End of Software” “Cloud computing yields substantial economies of scale and skill, and lowers total cost of ownership (TCO).” – The Hurwitz Group “The Compelling TCO Case for Cloud Computing”
SaaS Advantages On-Premise ModelCloud-Based Model Requires new HW, SW, & IT support No new HW, SW or IT involvement Implement in months/years Implement in weeks Time consuming, costly upgrades Automatic, disruption-free upgrades No innovation velocity Constant improvement, enhancement Designed for techie users Designed for business users Time-consuming to rollout Automatically accessible worldwide High upfront cost and TCO Low annual subscriptions and TCO High risk: big upfront purchase Low risk: try first, cancel at any time
Business Cloud Usage of savings Majority of business save money with the cloud 82% of companies choose cloud subscriptions lasting one year or more Businesses are into the cloud for the long term 65% of U.S. government IT workers have moved to the cloud U.S. federal agencies are required to adopt a “cloud first” policy 48% Source: CSC Cloud Usage Index
Myth 1 : My data is not secure Fact: Cloud is more secure than your servers. Additionally, Cloud servers are equipped with: Multi layers of firewalls Highly personalized access to data. Security patches and updates regularly applied to servers.
Myth 2: My company is too big to use the cloud Facts: Small, Medium and MNC’s use cloud services. Larger companies can make better use of the cloud with a bigger budget and an IT dept. that can aptly manage data. 1 or 10000+ employees, the cloud benefits all. Reduces expenditure on technology infrastructure. Globalize your organization in a frugal manner.
Myth 3: My data is not completely mine Fact: Every legitimate Cloud storage provider has special clauses in their Terms of Service which specify that the user retains complete ownership of their data.
Myth 4: It suits the west, and only the west. Facts: A TCS study in 2011 shows that Cloud adoption was highest in Latin America- 42% Asia pacific region will have the highest adoption of cloud in 2014 with 52% as against the US’s usage of 33% Cloud is a Global phenomenon.
Myth 5: Cloud companies come fast, Vanish faster! Facts: Cloud is beneficial to both customers & vendors A Win-Win proposition Success Story: What began as an online book store, is now worth more than 30 billion USD. Amazon.com achieved this through cloud computing.
Prominent Cloud Vendors Top Cloud Vendors Marketing Automation CRM, Sales Force Automation Signature Automation Human Capital Management Communicatio n & Meetings Search Engine Marketing Sales & Use Tax Call Center Project Management Website Monitoring, Testing Fixed Asset, Equity Management ERP, Payroll, Banking
Even BIG FAT ERP Vendors are moving to cloud… Do you still want to stay with your On-Premise System?
“Any intelligent fool can make things bigger, more complex, and more violent. It takes a touch of genius — and a lot of courage to move in the opposite direction.” -E.F.Schumacher