The Truth about the Cloud Doug Ash, Don Thomson (TaiRox), Robert Eppele (GoToMyERP), Jacques Decarie (Industrios)

Agenda Hype Definitions and deployment Deployment Types and Hybrid Model – Jacques Decarie Business and the Triangle of Death Pricing models The truth is in the Numbers – Don Thomson Hosting – Robert Eppele What makes the most sense and conclusions

Hype The CLOUD is the future. If you are not on the CLOUD, you are dead. ¼ of all people were born on the cloud. Get with it or get out. New businesses only know the cloud Cloud 10 – HUGE billboard at the Toronto Airport *** CLOUD *** CLOUD *** CLOUD *** CLOUD ***

Definitions The Cloud SaaS – Software as a Service – monthly pricing your data and programs are stored somewhere else. AKA Hosting Your data is accessible from any internet device Your computing power is managed (regulated) somewhere else SaaS – Software as a Service – monthly pricing The Cloud and SaaS are usually confused.

Delivery or Deployment Browser based – like Sage CRM – often problems with different browsers. Sage 300 working on this. RDP or TS or Citrix to remote server – Sage 300 does this – probably most stable. Mobile App – like phone email – very portable – very platform specific. For example EventBoard menus are visible in IOS but not in Android. Watches / Car screens

Deployment Types and Services Cloud Services Managed Services Public IaaS Private IaaS Private IaaS on Customer Premise OS Health & Availability Backups Firewall, Load Balancer Microsoft Licensing Disaster Recovery Security

Hybrid ERP Approach Altron Automation, Inc. March 27, 2017 Hybrid ERP – Integration to external systems is a core competency of ours The production staff will use the functionality in our Production, Project Costing, Shop Floor Tracking modules providing a single solution for the team. With seamless integration to our Time Tracking capabilities production staff easily track their clock in/out times feeding the time tracking system the information to provide complete time tracking information including: overtime, double overtime, absences, service time, vacations, holidays, shift premiums.

Your Business Software verses Services Income – can your business survive with little or no software income. Recurring (monthly) vs One Time (upfront & small annual) Consistent vs Feast & Famine The transition is hard – triangle of death.

Triangle of death - good One time revenues fall, while CLOUD revenues rise, the gap is the triangle of death. Here the gap is small. $$ Time Current SaaS

Triangle of death - Deadly Concerns: Business revenue and Sales person commissions $$ Time Current SaaS The bigger the triangle, the worse it is.

SaaS pricing models Everything monthly, commissions calculated monthly, paid quarterly. Some upfront (services?), most monthly. All services up front, rest monthly The crossover is typically 30-36 months. OR Financing = purchase (software + Services) + 3x (annual) / 36

The Truth is in The Numbers

The Truth is in The Numbers

Case Study Move 5 servers from the IBM Cloud to AWS

Wonders & Woes Listening to Stories Sign-up Performance Turn On and Off … or not Boot From Phone Hardware Failure & Elastic IPs One Click Switches Hardware Our “Payments” Are Put On Hold We Are Throttled for Lack of CPU Credits Billing Mysteries

The Numbers: Move to the Cloud and Pay more for better connectivity 2x as much Pay less for redundancy 0.5x as much Pay for performance boosts

Infrastructure – OnPrem VS Hosting Clouding largely shifts costs so that your investment becomes effective and gain flexibility by leveraging technology optimally. Don’t expect to eliminate all costs. Required Not Needed Fastest Shift/ Less Likely Today

Should I take my SAGE300 Customers to the Cloud? “Possibly.” Check the ATTITUDE of the Customer. It’s not perfect. If you believe that this is perfect – this is not for you. There are many variables that exist. # Reason for Failure. Does the Customer understand the Value of the move? Cost of Transferring Responsibility How to Compare Internally Managed vs Fully Managed What Are my Components of Cost, Operations and Risk?

Completeness of Service Should I take my SAGE300 Customers to the Cloud? “Possibly.” (continued). Completeness of Service Receive Better Communication, Feedback and Care. The Client GETS Faster Response Bigger Hug. Cost Effectiveness Consolidates Most IT Costs Into 1 Provider Removes Certain Infrastructure Costs Reduces Miscalculating Actual Need of Resources

Great Hosting Partner Characteristics Glowing Sage Partner and Customer References Focused on ERP Fully Managed Services (not just hosting) Can extend your support hands because they know the products Is Sage 300 Authorized Reseller or Consultant Certified or Experienced with Third Party Solutions Has Canadian Data Center/ Will Address Data Sovereignty Advises on Continuity Planning to Remove Themselves in Emergency

What makes the most sense? Mobile users can take the most advantage of the cloud. SaaS pricing comes from cash flow instead of capital budget. Large office maybe best with on-site – still need local network As more devices become wireless the cloud makes more sense for consumers. Internet must be ubiquitous (always there)

Conclusions The CLOUD is the trend, especially for consumers. Some businesses want it, most just want SaaS pricing and some remote access – like for the owner. Trend to anywhere, anytime access. Cloud might be next for Sage 300 users.

Questions???

The Truth about the Cloud Thank You for attending. Doug Ash, Don Thomson (TaiRox), Roberty Eppele (GoToMyERP), Jacques Decarie (Industrios)