Competing Against the Cloud

Agenda “Cloud” definitions Advantages of SaaS Advantages of On-premise What to do against Host & Adaptive

Cloud Definitions

Software as a Service (SaaS) Access solution through a browser No customer infrastructure, no software Multi-tenant (Public Cloud) Single code stream Single-tenant (Private Cloud)

Multi-tenant Multi-tenant (Public Cloud) One large system (servers and database) for all with a layer carved out in which each customer can “configure” the solution Examples include: Salesforce, Gmail, eBay, Amazon Host Analytics, Adaptive Planning

Single-Tenant Single-Tenant (Private Cloud) Each customer has dedicated server(s) and database(s) “Hosted” in a third party data centre Configured or customized Examples include: Revlon ‘s Prophix implementation Oracle’s “Cloud” CPM

Comparing SaaS with On-Premise

SaaS Advantages No servers to manage No software to install No IT resource impact Lower initial costs (perceived) Operating cost versus capital Spread out the payments (myth?) High levels of security and performance Automatic software updates Sandbox environments sometimes included No upgrade costs

SaaS Disadvantages Limited customization Difficult to accommodate complex and varying processes Integration is always difficult Real time and multi-data sources are VERY difficult Higher costs over time, continuous subscription Forced software updates Financial data is outside customer’s firewall

On-Premise Advantages High degrees of customization Ideally suited for more complex business processes Integration is easier Stronger in real-time and multi-data source environments Lower cost over longer time periods Keep financial data behind corporate firewall Planned upgrades Control your own destiny

Competing Against: Host Analytics

Host Analytics- business model Two tiered Direct Sales model based on revenue ($100M line) Inside Sales team to follow up on In-bound Leads and make Outbound calls Strive for a discovery call followed by at least two demos (basic overview, followed by custom) Partner Channel is in flux, internal team was recently let go They talk about “100% growth” but unclear how it’s measured They are growing customer base but they are much smaller than Prophix

Host Analytics- solution overview The only SaaS CPM solution in the market Demos well, strong Budgeting functionality Ex: Variance and Spread methods Configured solution Can change field names Define budget approvers Can add a limited number of fields (working from a pre-defined overall cube) Personnel Planning but not Detailed Planning Price according to their competition, focus on 3 year TCO model Hyperion = high, Prophix = Low They are not a Services company weak implementations, iterative approach, does it work yet? offshore resources

Host Analytics- architecture MS SQL Server 2008 Multi-tenant solution They can see who is/isn’t logging in Can be proactive when application performance is lacking Talk about a Customer Success resource but only in the largest of accounts Built-in Sandbox for Dev/Test for each customer

Host Analytics- functionality CPM Suite (Budgeting, Planning Suite and Consolidation) or point solution modules Connector packs or Boomi for integration Enterprise and SMB Editions but there is no difference! Price packaging only. Modules include: Budgeting Capital Planning, Revenue Planning, Workforce Planning Consolidator Score-carding / Reporting Decision Hub – Executive data portal – ex: comparison of standard KPI’s against your industry Excel integration – it is Excel Drill through only if all transactional data is loaded into the cube Do have Line Item Detail and Comments Strong Consolidation capabilities

Host Analytics- weaknesses No workflow engine, only budgeting approval Weak/limited integration, especially drill across Planning-specific modules, not flexible like DPM No concept of a custom cube

Host Analytics- PS Internal Professional Services team Sell “Activation Packs” for fixed cost Not a Services company ** Trial and error approach Willing to break-even on services Focus is recurring revenue from license subscription

How does Host compete against Prophix? “What’s the Prophix cloud strategy?” “No one is buying on-premise software anymore” “Upgrades are expensive for Prophix customers” Impact to your IT team – servers, maintenance, backups, etc. 3 year TCO model focus Aggressive discounts for multi-year, pre-paid commitment

Host Compete Recommendations Focus the customer on immediate AND future CPM needs – increases immediate and total overall costs Force Host to give pricing early i.e. how much does each user type cost? What about future modules? Limits what discounting they have left at month-end They hide pricing detail Discounts offered for multi-year, upfront payment Ask if they are getting Enterprise or SMB pricing? Get customer to ask Host to demo Workflow, drill across to source, integration with multiple sources, build custom reports

Host Compete Recommendations Customer should consider longer TCO past 3 years, SaaS is higher cost Late 2012 - downsized by 20%, VC mandated, customer resources have been affected Early 2013 – Series “D” financing, not standard VC progression, thinking 3-5 years out, will they still be around?

Competing Against: Adaptive Planning

Adaptive Planning The low-price point provider Not CPM, Budgeting + No true Financial Consolidation solution Budgeting demos very well Expand the customer’s solution requirements Force AP to demo functionality they cannot provide – CPM Platform? Personnel Planning, Workflow, Drill Across Sell the value of our CPM platform – why invest in something that you will quickly outgrow?

Summary SaaS works well for applications with basic processes and little to no integration On-premise fits better for complex processes and multi-integration points Uncover as many business pains as possible Sell the value of our CPM suite and sell it high Sell with confidence and conviction – we ARE very good at what we do Do not fear the cloud