risks and rewards of moving financial applications to the cloud
TRANSCRIPT
W W W . C H R O M E R I V E R . C O M
Risks and Rewards of Moving
Financial Applications to the Cloud
JULIE ROY, CHROME RIVER TECHNOLOGIES
OCTOBER 19, 2016
A Quick Audience Poll
• Why all the fuss?o What does it mean and why should you care.
• Navigating the jargono What are the buzzwords that vendors use and how can you be
wise to the sales-speak?
• Security myth versus realityo How safe is data stored in the cloud, and what is the exposure?
• Total cost of ownership overviewo How does cloud pricing stack up against traditional software over
its entire lifecycle?
What We’ll be Talking About
Business change is accelerating
Data is
everywhere and
needs integrating
Organizations
must constantly
evolve
The pace of
business has
accelerated
The business
climate is more
complex
• There is a war for top talent
• Today’s workforce expects more
both in the office and on the go
• Consumerization of enterprise
apps is a necessity
• Employee engagement is a key
driver of performance
The workplace has changed
Cloud computing is a type of Internet-based computing that
provides shared computer processing resources and data to
computers and other devices on demand. It is a model for
enabling ubiquitous, on-demand access to a shared pool of
configurable computing resources (e.g., computer networks,
servers, storage, applications and services).
Software as a Service (SaaS) is a software licensing and
delivery model in which software is licensed on a subscription
basis and is centrally hosted. It is sometimes referred to as “on-
demand software.” SaaS is typically accessed by users using a
thin client via a web browser.
Getting Started: Is it “Cloud” or “SaaS”?
Source: Wikipedia
Cloud vs On-premise: What’s the difference?
Consistent
monthly
subscription.
Licenses,
hardware,
maintenance,
support,
upgrades.
Pricing
Support
handled by
vendor as part
of subscription.
Basic support
by in-house
teams,
additional
support with
additional fee.
Support
Reduced
internal IT
requirement to
implement or
support.
Internal IT
implements,
supports and
oversees
hardware and
software
upgrades.
Internal IT
Regular
upgrades part of
subscription.
Upgrades once
or twice per
year with
additional
software and
consulting fees.
Upgrades
Managed by
vendor as part of
subscription.
Customer
responsible for
cost and
management.
Security
Where are we now?
ADOPTION OF CLOUD ENTERPRISE SOFTWARE
Enterprise Cloud Adoption Growth
72%
28%
53%
47%
Cloud vs. on-premise spend, 2014-2019 - percent of total software spend
Source: IDC, February 2016
2014 2019
Financial Cloud Application Growth
2015: 30%
2020: 47%
2025: 65%
Cloud software spend, 2015-2025 - percent of total financial software spend
Source: Gartner / FEI, August 2016
Deployment is still slow
73%
55%
55%
70%
61%
77%
57%
46%
47%
53%
48%
49%
9%
11%
12%
12%
13%
13%
17%
19%
20%
20%
26%
26%
Board books
Financial modeling
Management reporting
Reconciliation management
Integrated financial management
SEC submissions
Financial reporting
CRM
Human Resources
Budgeting and forecasting
Payroll
Travel expense management
No plans Investigating Piloting Deploying Deployed
Cloud financial software adoption and deployment, 2016
Source: Gartner / FEI, August 2016
“Can you trust the internet?”
SECURITY AND COMPLIANCE
Physical security
• Hardened data center
• Redundant power
source, data
connections and
HVAC in data center
• Restricted access to
data center
• Even more restricted
access to server room
Are Cloud Apps Secure?
Data security
• Encryption – in transit
and at rest
• Firewalls
• Intrusion prevention
and detection
• Penetration testing
• Security audits
• Disaster recovery
Application security
• Single sign-on (SSO)
• Active directory
federation
• Multi-factor
authentication
All security costs and expertise spread across the entire customer base
Business Continuity
Redundant
Servers
Regular Full
Failover
Testing
Service
Level
Agreement
(uptime)
Recovery
Point
Objective
“You never own the software.”
TOTAL COST OF OWNERSHIP
Comparing Total Cost of Ownership
Implementation
Subscription (upgrades, support, hosting hardware, etc.)
Cloud
Comparing Total Cost of Ownership
Implementation, software licenses, server and storage hardware
Support and
maintenance
Software
upgrade
Update
storageSoftware
upgrade
Replace
server
On-premise
New release available to users
New release available to users
Access to innovation
Software
development
cycle
Customer
implementation
/ configuration
Software
development
cycle
• Capacity management
• Cost / TCO
• Security
• Service Level
• Innovation
• Contractual obligationso (Data loss, compliance, SLAs)
Predictability
“A catalyst for business
transformation.”
VALUE CREATION
“While organizations
may come to the cloud
to reduce costs, it’s not
why they stay. The true
potential of cloud lies in
an organization’s ability
to leverage this agile
delivery model to
transform the
business.”Principal and Global Cloud
Enablement, KPMG
Catalyst for business transformation
49%
42%
37%
35%
32%
30%
28%
28%
Value creation with cloud
Drive cost
efficiencies
Better enable
mobile workforce
Improve customer /
partner alignment
Better leverage data
to provide insight
Product development
/ innovation
Develop new
business models
Shift to global
shared services
Faster time
to market
Source: KPMG, 2014
Top ways companies use cloud software to drive business transformation
Rapid scale – enables IT to provision and modify
complex infrastructure faster than traditional on premise
systems
Agility – Cloud enables organizations to be more nimble
and responsive to changing business needs
Functionality – organizations can take advantage of
innovation more easily with cloud, as it reduces the need
for incremental investments in supporting technology
infrastructure
Business transformation
Source: KPMG, 2014
Built to Last – Canadian Customers
Accounting
Banking
Construction
Education
Finance
Healthcare
Manufacturing
Real Estate
Sports
Technology
Telecommunications
Questions
W W W . C H R O M E R I V E R . C O M