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• Understand more about the cost, service, functionality,
technology considerations and business benefits when
looking at on-premises systems and cloud-based offerings.
• Comprehend the various evaluation criteria and how they
relate to each deployment option.
• Appreciate how the resulting deployments provide a
reduced reliance on spreadsheets, shortened period-end
reporting cycles, and accelerated reporting, enabling
Finance to spend more time on value-added analysis
Learning Objectives
After attending this event you will be able to:
Event Notes
• The slides are available under “Handouts.”
• We will send you links via email to the presentation and
the recording within 24 hrs.
• For CPE/CE/CPD: Answer all polling questions and
remain for the duration. Credits awarded in 24 hours.
– Questions on credits? Email [email protected].
• We want to hear from you! Ask questions for the Q&A
session at the end of the event.
• Please take the short survey at the end of the webinar.
Ask, Share, Learn – Within the Largest Community of Corporate Finance Professionals
A Modern Finance Case Study –
Cloud or On-Premise?Craig Schiff, CEO, BPM Partners
Joey Perrone, Director FP&A, Aeglea Biotherapeutics
Ronel Marbella, Director Product Strategy, Prophix
Cloud or On-Premise?
Definitions
Cloud:
– A SaaS, cloud solution provided as the standard and only
approach for all of a vendor’s customers (multi-tenant)
– An on-premises product hosted for the customer by the vendor
through a third-party (multi-tenant and single-tenant)
On-Premise:
– An on site internally hosted and operated application that is
physically installed on a company’s server
Overview
On-premise Cloud
Full suite available Yes Yes
Unlimited # of users Yes Yes
Unlimited database Yes Yes
Vendor ability to deliver solution fit
to unique requirements/processes
Yes Yes, unless
custom code
required
Well-defined product roadmap Yes Yes
Availability and Performance
On-premise Cloud
Performance maintained despite adding users or data
No Yes, except for hosted applications
Vendor SLA for uptime No Yes
Vendor proactively monitors performance and availability
No Yes
Redundant data centers No Yes, in most cases
Hourly backups No Yes, in most cases
Upgrades
On-Premise Cloud
Always on latest software version No Yes (it’s required), but may vary for hosted application
Pace of innovation (frequency of upgrades)
6 to 12 months, longer for some
Quarterly, in most cases
Vendor fully responsible for upgrades No Yes – customer option to test the upgrade in a non-production environment
Security
On-premise Cloud
Immediate security patches In some cases In most cases
Third-party audits In some cases In most cases
Penetration testing In some cases In most cases
Designed with security as an
overriding priority
No Yes
Inside the firewall Yes No
Available Offerings
Every major vendor has a cloud offering
today
Some vendors are cloud only
Some vendors have both on-premise
solutions and cloud solutions
Some vendors have a single product that
can be deployed on-premise or hosted
The BPM Pulse
Cloud or On-Premise Market Feedback
BPM Pulse Survey
2016 Edition
Approximately 300 valid responses
Largest group of respondents in North America
Across all industries, largest group of respondents in
manufacturing, healthcare, financial services, not for
profit, services, retail, higher education
Company size: half midmarket, followed by
large/enterprise, and then small
Mix of finance, IT, and operations respondents with
largest group in finance
Cloud/Hosted Solutions
Source: BPM Partners 2016 BPM Pulse Survey
65% Yes
35% No/Maybe
Key Data
Cloud Priority
Source: BPM Partners 2016 BPM Pulse Survey
Benefits of Cloud (Buyers)
Source: BPM Partners 2016 BPM Pulse Survey
Source: BPM Partners 2016 BPM Pulse Survey
Benefits of Cloud (Owners)
Source: BPM Partners 2016 BPM Pulse Survey
Cloud BPM Users
Cloud Concerns
Source: BPM Partners 2016 BPM Pulse Survey
Cloud Timing
Source: BPM Partners 2016 BPM Pulse Survey
Cloud Laggards
Certain Industries
– Government
– Financial Services
– Healthcare
– #1 Reason – Security Concerns
Larger Organizations
– Abundant IT staff, investment in existing on-
premise applications, control
Cost Considerations
License fee + annual maintenance vs.
annual subscription
Hardware/personnel costs
Years for comparative analysis
Cash flow benefit
Operating expense vs. capital expense
Cloud Years
Source: BPM Partners 2016 BPM Pulse Survey
Source: BPM Partners 2016 BPM Pulse Survey
Cumulative Costs Over Time
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
On-premise 150,000 175,000 200,000 225,000 250,000 275,000
Cloud 50,000 100,000 150,000 200,000 250,000 300,000
Assumptions: 50 user system
On-premise: $ 125,000 one-time license fee; $ 25,000 annual LR&M
Cloud: $ 50,000 annual subscription
Cloud Source
Source: BPM Partners 2016 BPM Pulse Survey
Bottom Line
Reasons to Choose Cloud:
– Company priority to move to the cloud
– Limited IT resources (personnel/hardware)
– Need easy access from anywhere
– Desire frequent and automatic updates
Bottom Line
Reasons to Choose On-Premise:
– Industry/company not ready for the cloud
– IT resources readily available
– Want to control updates/with less frequency
– Looking to minimize recurring costs
Bottom Line
Deployment Choice is Ideal:
– Focus on business requirements
– Can start with on-premise and move to cloud
when ready
– Most common vendor offering
Performance Management is Valuable
Regardless of Deployment Approach
Primary Drivers for BPM
Source: BPM Partners 2016 BPM Pulse Survey
How satisfied are you with budgeting?
Source: BPM Partners 2016 BPM Pulse Survey
BPM System Users
Source: BPM Partners 2016 BPM Pulse Survey
Important Features
in a Financial Consolidation Solution
Source: BPM Partners 2016 BPM Pulse Survey
Source: BPM Partners 2016 BPM Pulse Survey
Benefits Received
Source: BPM Partners 2016 BPM Pulse Survey
www.prophix.com
Aeglea BioTherapeutics
Company Background
Operating since December 2013
Website: www.aegleabio.com
Head office location: Austin, Texas
Number of employees: 30
ERP: NetSuite
Description: Aeglea BioTherapeutics, Inc., (NASDAQ: AGLE) is a biotechnology company committed to developing enzyme-based therapeutics in the field of amino acid metabolism to treat rare genetic diseases and cancer.
www.prophix.com
Webinar Speaker
Joey PerroneDirector FP&A
AegleaBiotherapeutics
Responsibilities
• FP&A – budgets/forecasts
• Treasury
• Cash management
• Investor relations
• Management reporting
www.prophix.com
Business Challenges
Symptom #1:
• Difficulties for Finance to react (let alone be proactive) in a dynamic environment
Underlying problems:
• Aeglea, a pre-revenue company, relies on external funding
• When a financing event occurs, strategic and operational plans will change, allowing us to grow and expand
• Need to be able to quickly update forecasts to align with new strategy
www.prophix.com
Business Challenges (cont’d)
Symptom #2:
Challenges running clinical trial budgeting
Underlying problem:
Inherent complexity of clinical trials, which are unique and difficult to predict and manage
Symptom #3:
Struggles with cash management
Underlying problem:
Need to allocate cash to projects to drive value
www.prophix.com
Weighing Potential Solutions
Desired features of a potential solution:
• Ability to aggregate department/project budgets/forecasts dynamically
• Ad-Hoc financial analysis
• Management reporting
• Adjusting prior year financials to align with current organizational structure
www.prophix.com
Weighing the Cloud vs. On-Premise Implementation
• Aeglea is a strictly cloud-based company
• No investments in on-premise systems
• No internal IT staff
• Need for access anywhere with Internet service
• User-friendly interface
www.prophix.com
Implementation
• My second Prophix implementation • Entire implementation took ~40 hours• Worked with Prophix design architect who helped
me think big pictureo Focus: design to solve today’s problems and tomorrow’s
problems
• Implementation went extremely smoothly and we have rolled out Prophix to Accounting for ad hoc and reporting purposes
• Workflow will be rolled out in early 2017 to the larger company
• No huge challenges, looking forward to rollout of new functionality in early 2017
www.prophix.com
First 90 Days (Until Now)
• Load 2017 budget• Basic reporting• Personnel planning• Cash forecasting• Rolling out to Accounting
as flux analysis tool• Project reporting
Integration• Manually load data from our NetSuite ERP
into Prophix• Looking forward to automating this in
early 2017
www.prophix.com
Automating Finance Processes
Prior Processes
It would typically take two weeks to:
• Roll up individual budgets
• Produce personnel projections
• Project reporting
• Set out cash requirements
• Make final adjustments
www.prophix.com
Automating Finance Processes (cont’d)
Budgeting
• Consolidating department/project budgets
• Adjusting historical financials
• Conducting personnel planning
• Project Reporting
Forecasting
• All of the above + quarterly updates to the budget
www.prophix.com
Automating Finance Processes (cont’d)
Reporting
• Flux analysis reports
• Trial expense reports
• Project reporting
• Profit & loss statements
www.prophix.com
Improved Analysis & Decision Making
Improved Analysis• Clinical trial costs
• Project reporting
• Quicker consolidation
• Personnel planning
Data-Driven Decision Making• Project teams are able to track project expenses
• Reporting is distributed more quickly and answers are provided more timely
• ‘Buy ups’ to the budget are implemented more quickly
www.prophix.com
Avoid relying too heavily on external
consultants . You can lead this
internally!
Keys to Maximizing CPM Software
Earn buy-in from senior
management –from the start!
Train your team to
ensure change management
Ensure the end users
understand
the templates
About Prophix
Established
in 1987 by finance
executives
Laser focused
on the Corporate
Management Software
(CPM) space
Prophix empowers
organizations to bring
together all data sources on
a single platform
More than
3,000 customers in
over 100 countries
Headquarters:
Toronto area, Canada. Other
locations: UK, US, South
America, Denmark, Germany
Recognized by
industry analysts for a superior
user experience
Cloud or On-
Premise?Choosing what’s right for your Organization
Ronel Marbella
Director, Product Strategy
www.prophix .com
Recap of Perspectives
Functionality and vendor delivery capability should be the top two criteria in selecting a BPM/ CPM/ EPM solution
After the above, the choice of Cloud vs. On-Premise depends the other factors and on the organization’s unique situation
www.prophix .com
IT strategy
What Are the Organizational Considerations?
Ease of implementation/ use
ERP/ GL/ data source location
Broad vs. localized access
Recurring or up-front costs
Ability to manage/ support
Security
www.prophix .com
Limited ability/ resources to secure
Cloud-only or pursuing cloud strategy
ERP/ GL/ other data already in cloud
Distributed user base
Lower cost of entry/ OpExpreference
Limited IT resources/ ability to support
Organizations that Choose Cloud…
www.prophix .com
Industry standard security in-place
On-premise strategy
ERP/ GL/ other data mostly on-premise
Localized user base
CapEx preference/ seeking greatest ROI
Existing IT resources/ ability to support
Organizations that Choose On-Premise…
www.prophix .com
It’s All About CHOICE
Many different reasons drive choice between Cloud and On-Premise
Organizations should choose the solution that enables them to meet the needs of their unique situation
Thank You
Q & A
• Thanks to our speakers
• Join us at www.proformative.com to continue the
conversation with your peers in our community
• If you want an introduction to today’s speakers
or sponsor, tell us on the survey!
A Few Final Items
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