The Truth about the Cloud

Doug Ash, Don Thomson (TaiRox), Phil Hicks (Strategic Online Services)

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 1 of 2

• The Cloud • 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.

Definitions 2 of 2• IaaS – Infrastructure as a Service• Just the server. Virtual.• What is dedicated and what is shared? / Regulated by whom?• Is your ERP software designed for a scalable infrastructure?• Who does disaster recovery testing?• Is an Amazon warehouse part of the infrastructure?

• PaaS – Platform as a Service• Confused with IaaS by publishers who don’t have it• Has your ERP software been designed as a platform?

Delivery

• Browser based – like Sage CRM – big problems with different browsers.• RDP or TS 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

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

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Time Current SaaS

One time revenues fall, while CLOUD revenues rise, the gap is the triangle of death.Here the gap is small.

Triangle of death - Deadly

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Time Current SaaS

The bigger the triangle, the worse it is.

Concerns: Business revenue and Sales person commissions

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

Infrastructure

In House CloudWorkstations Yes YesServer Yes NoInternet Router Yes YesVirus Protection Yes YesNetwork yes ??

The need for infrastructure is NOT eliminated.

Why should I take my customer to the cloud (hosted sage 300 remote desktop)?• Provide your customer with an environment for sage 300 that doesn’t

break• Take away that ‘IT’ who keeps breaking things• Eliminate environmental technical support problems• Eliminate the need for you to know the sage 300 technical install and

network side

What to look for in a hosting partner

• Focused on hosting • Certified installers for Sage 300 & Third Party• Will they load service packs/upgrades?

• Canadian vs USA – Patriot act• Glowing customer references• Up time / speed / Disaster recovery• Sage doesn’t offer the third party products!

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.• As more devices become wireless the cloud makes more sense.• 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.• IaaS might be next for Sage 300 users.

The Truth about the Cloud

Thank You for attending.

Doug Ash, Don Thomson (TaiRox), Phil Hicks (Strategic Online Services)