top 5 reasons your business needs the cloud · of epicor. while these forward-looking statements...

Top 5 Reasons Your Business Needs the Cloud

Featuring:

Michael Goeke, EpicorEric Smith, Modern Distribution Management

May 24, 2016

Sponsored by:

• Introduction• Business priorities for distributors• Top reasons to move to the cloud• Real-world results• How to get to the cloud• Q&A

Agenda

Speakers

Michael GoekeProduct Marketing ManagerEpicor Software Corp.

Eric SmithAssociate EditorModern Distribution Management

© 2016 Epicor Software Corporation

Top 5 Reasons Your Business Needsthe CloudMichael Goeke, Epicor Software Corporation

© 2015 Epicor Software Corporation© 2015 Epicor Software Corporation© 2016 Epicor Software Corporation

Agenda for Today’s Discussion1. Introduction

Why are we here? - or, The Cost of “Doing Nothing” has Gone Up.

Top Business Priorities for Distributors

2. Top 5 Reasons Companies Move to the Cloud

3. The Results are In

4. Getting to the Cloud

5. Questions and Answers


Introduction


Safe Harbor StatementFORWARD-LOOKING STATEMENTS. Some of the information in this presentation constitutes forward-looking information,

including with respect to future product strategies, financial condition, results of operations, continued profitability and activities

of Epicor. While these forward-looking statements represent our current judgment, these statements are based on assumptions

that are subject to a wide range of risks and our actual results could differ materially. Epicor undertakes no obligation to revise or

update publicly any forward-looking statements.


Introduction & DefinitionsSome Basics:

• The Cloud means web-based applications, like Gmail, Salesforce.com• The Cloud has many forms - single-tenant, multi-tenant, hybrid• You don’t see the hardware/ software, nor maintain it• Payment is usually a monthly service fee (includes support)• Configuration & data differs between Cloud clients• “Your system” is likely being used today by other customers

Today, half of all new ERP deployments are in the cloud.


Why we are here . . .The Cost (and Pain) of “Doing Nothing” has Gone Up.

• New competitors enter the market, with new advantages• New customer expectations, changes are needed• Visible ecommerce price competition on the web• Difficulty hiring and keeping good workers• Costs and revenue are converging – margins are tight• Customer “wallet-share” is falling

. . . and we need alternatives.


Top Business Priorities for DistributorsPrimary Challenges for Distributors

− Revenue growth – more product, more sales, more accts− Increased profitability – efficient processes, productivity− Employee training – faster to skills, higher proficiency− Customer retention – more loyalty, higher value− Better inventory management− Reduce business costs− Better visibility into performance− Better transportation/ freight/ logistics management− Reduce paperwork, data entry & redundant processes− Improve supply chain communication

"The 2015 Distribution Industry Outlook", presentation, Modern Distribution Management, January 15, 2015


Top Reasons to Move to the Cloud


Top Reasons Companies move to CloudThe Top Reasons 500 Epicor clients chose Cloud Deployment Compelling Cloud Economics

Time has passed and the proof is clear Faster time-to-value

With more being done in the cloud, everything gets faster Better use of resources (IT and others)

Resources do more valuable work for customers Better system security

Professionals do the work, systems are more secure Mobility, collaboration and alignment

Built-in mobility, only one version of the truth for all


Reason #1: Compelling Cloud EconomicsA very conservative financial assessment: just the software

On-Premises Deployment► A $35,000 Software purchase.► 20% annual Maintenance ($7k)► 5-Year TCO -

• Non-Discounted = $70,000• @ Y=5% = $63,640


Reason #1: Compelling Cloud EconomicsA very conservative financial assessment: just the software

On-Premises Deployment► A $35,000 Software purchase.► 20% annual Maintenance ($7k)► 5-Year TCO -

• Non-Discounted = $70,000• @ Y=5% = $63,640

Cloud Deployment► About $1,800/month► Includes Maintenance► 5-Year TCO:

• Non-Discounted = $108,000• @ Y=5% = $93,516

Conclusion: Cost is 32% lower for an on-premises solution.


Looking at JUST the software costs…break-even is about 4 ½ years.

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Which is the Better Deal . . . and, at what Cost?


Which is the Better Deal . . . and, at what Cost? Looking at JUST the software costs…

break-even is about 4 ½ years.

What about everything else?• Cost of capital• IT resources• CapEx vs OpEx adjustments• Mobile access value• Cost of installation and upgrades• IT staff support costs• Cost of being locked-in (?)

That’s whycloud deployment has become the new normfor enterprise applications.

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Thoughtfully Consider the Full TCO


Reason #2: Faster Time-to-value Think of all the things that you won’t have to do.

• No more server hardware purchases/ expansions• No more software patches• No more back-ups (or back-up verification)• No system upgrade installations• No anti-virus/ malware/ firewall

Re-using existing, proven hardware, software and support system. New subscription – configure, load data and train the users. Some vendors will let you move to the Cloud and back again.

Conclusion: Improved responsiveness and customer service.


Reason #3: Better use of Resources

► What are your IT experts doing? • Installing Service Packs• Dealing with version control• Checking backups (hopefully)• Disaster mitigation • Endless classes to keep up-to-date

on technology


Reason #3: Better use of Resources

► What are your IT experts doing? • Installing Service Packs• Dealing with version control• Checking backups (hopefully)• Disaster mitigation • Endless classes to keep up-to-date

on technology

► What should they be doing? • Building dashboards• Pushing information and

services out to your customers• Getting tech to the field team

and the shop floor• Focusing tech on the evolving

business needs


Reason #4: Better System Security We’ve finally retired the myth that on-premises is

more secure.Cloud Vendors invest MUCH more in

Physical SecurityElectronic SecurityIntrusion DetectionBackup & Disaster RecoveryData Management PoliciesBusiness Continuity, Uptime & Reliability

Would you like to compare IT service level metrics?


Reason #4: Better System Security We’ve finally retired the myth that on-premises is

more secure. Cloud Vendors invest MUCH more in

• Physical Security• Electronic Security• Intrusion Detection• Backup & Disaster Recovery• Data Management Policies• Business Continuity, Uptime & Reliability

Would you like to compare IT service level metrics?


Reason #5: Mobility, Collaboration and Alignment

Our world is now full of mobile professionals

Need fast access from a mobile device to do short/ critical tasks

Service teams that need access to accounts, ordering, labor, service orders, material status

With Cloud, everyone gets mobile access

Coordination of employees, contract personnel and customers

All in real-time and with the same data


Other Reasons: Obsolescence of legacy on-premises systems

Maturing workforce departs with “tribal” knowledge

Younger members not familiar with old systems techniques

Easiest to train new employees on a Cloud system

New employees are comfortable with no infrastructure

Fast, easy updates in the Cloud to stay current

Modern systems are more “data friendly” to integrate other information - supplier updates, pricing, specifications, etc.


The Results are In


Anticipated versus Realized Benefits of Cloud“In the end, it would appear that, yes, SaaS has lived up to it’s promises. If you are on the fence … consider this: Even with all the hype … savings and benefits have been understated, not overblown. The sooner you move, the sooner you will be able to realize those benefits yourself”


75%

72%

71%

69%

69%

68%

53%

IMPROVED BUSINESS AGILITY

SPEED OF IMPLEMENTATION AND DEPLOYMENT

FASTER DELIVERY OF NEW FEATURES AND FUNCTIONS

SUPPORT BUSINESS INNOVATION WITH NEW CAPABILITIES

ALLOWS US TO FOCUS RESOURCES ON MORE IMPORTANT PROJECTS

LOWER OVERALL COSTS

SUBSTITUTE UPFRONT COSTS WITH REGULAR MONTHLY PAYMENTS

Cost

Agility & Speed

A Parting Thought: It’s not all about the Money…

Forrester, May 2014 “Application Adoption Trends: The Rise Of SaaS”


Getting to the Cloud


The Cloud is a Continuum of Learning . . .

Document Sharing

Stand-aloneWorkloads

Advanced, Collaborative, Integrated Workloads

Productivity


Recommendations for Moving Up The Cloud is a deployment method - not functionality. Compare vendors based on the value created for your business

and your customers – not on just cost savings. Find vendors that can help you move through an incremental

cloud adoption process to gather experience. Consider if vendors give you freedom to move back on-

premises Think about where to invest that money to grow.

The Cloud is about small compromises and Big Advantages.Its not right for everyone, but it is right for almost everyone.


Take-aways:

Top 5 Reasons Your Business Needs the Cloud Compelling Cloud Economics

Faster time-to-value

Better use of resources (IT and others)

Proven system security

Better mobility, collaboration and alignment(Your Customers and Competitors)


Questions and Answers

Top 5 Reasons Your Business Needs the Cloud

Questions?

May 24, 2016

Sponsored by:

top 5 reasons your business needs the cloud · of epicor. while these forward-looking statements...

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