Cloud vs. On-premise 5 Advantages of Cloud Deployment Feb 2016

Improved Business Benefits From Cloud Deployment Cloud-based ERP applications deliver additional business benefits; achieved by continuously incorporating user and industry best practices into the applications Benefits Achieved Through Use of ERP: Patient and Constituent Organizations Cloud On-premise Additional Benefits of Cloud Reduction in operational costs 25% 7% 18% Improvement in complete and on-time delivery 26% 9% 17% Improvement in internal schedule compliance 19% 11% 8% Improvement in profitability over the past two years 6% 13% Improvement in time to decisions over the past year 38% 12% Improvement in cycle time and key business processes 31% 14% How business benefits are achieved Automatic upgrades incorporate best practices and performance improvements Best practices from across the user group are incorporated into future versions of the application Improve business processes Reduce likelihood of workarounds or wasted employee time Avoidance of customization to applications Reduces time to complete tasks / increases productivity of staff Improved application performance Built in disaster recovery reduces cost of downtime if an event were to occur Seamless integration of applications brings real-time data and improved analytics / decision making Integrated applications allows for continuous business performance improvement Source: Aberdeen Group 2014: Comparison of constituent and patient focused organizations

Improved Business Benefits From Cloud Deployment Cloud-based ERP applications deliver additional business benefits; achieved by continuously incorporating user and industry best practices into the applications Benefits Achieved Through Use of ERP: Mid-market Sized Organizations Cloud On-premise Additional Benefits of Cloud Reduction in operational costs 16% 8% Improvement in complete and on-time delivery 12% 4% Improvement in internal schedule compliance 14% 10% Improvement in profitability over the past two years 17% 9% Improvement in time to decisions over the past year 35% 11% 24% Improvement in cycle time and key business processes 13% How business benefits are achieved Automatic upgrades incorporate best practices and performance improvements Best practices from across the user group are incorporated into future versions of the application Improve business processes Reduce likelihood of workarounds or wasted employee time Avoidance of customization to applications Reduces time to complete tasks / increases productivity of staff Improved application performance Built in disaster recovery reduces cost of downtime if an event were to occur Seamless integration of applications brings real-time data and improved analytics / decision making Integrated applications allows for continuous business performance improvement Source: Aberdeen Group 2014

Advantage #1: Enhanced Agility Companies are using the cloud to create competitive advantages: avoiding application customization, improving application integration and enhancing data reliability Primary Reasons Firms Choosing Cloud Some Key Benefits of Enhanced Agility Improved application integration and application performance Lower risk / lower cost to integrate acquisitions or new locations Automatically match computing power to business demands, at no additional cost Improved agility is the primary reason many businesses are moving their applications to the cloud. Improved agility delivers: Improved use of internal resources reduced need for IT staff to spend time on keeping the lights on and fighting fires improved business processes reduce wasted employee time improved incorporation of best practices increase employee productivity Increased speed of rolling out new business initiatives With the scalability of the cloud, adapting up or down to meet the needs of your new business initiatives will reduce the costs of allowing your staff / business to innovate and grow Ability to quickly acquire, share, analyze and act on information Improves business decision making, productivity, competitiveness, supply chain performance, and the ability to adapt to changes in the business’s competitive ecosystem Simplified internal operations Have you ever looked around and thought “who the hell designed this disaster. There has to be an easier way…” Exactly. Let us help you move away from that. Additional benefits which drive users to choose the cloud include: Empowering innovation Cost reduction (lower total cost of ownership) Scalability and adaptability of the solution By using the cloud to improve business agility, they are achieving business performance improvements that are largely responsible for much of the business benefits highlighted on the next page. Source: http://www.cio.com/article/2455960/cloud-computing/cloud-computing-business-agility-drives-cloud-adoption.html

Advantage #2: Overcome Business and Technology Challenges A Modern ERP Helps Overcome Business and Technology Challenges Business Challenges Technology Challenges Business Agility blocked by rigid systems Rate of Change for business is accelerating User Adoption requires exceptional UX design Greater Integration requirements across social, mobile and analytics High Operating Costs limit scope for new investments Higher Risks of security & compliance Limited IT Resources available to maintain and develop existing applications Outdated IT Systems offer suboptimal functionality & don’t scale to support growth

Advantage #3: Access to Critical Real-time Information Cloud-based ERP platforms are better equipped to deliver the right information to the right people, at the right time Source: Aberdeen Group 2014

Advantage #4: Improved Implementation Cloud implementations are faster to complete, and offer improved value realization On-premise 4-6 weeks for installation and technical configuration vs. Cloud + Pre-configuration 30 minutes for provisioning Task requires the same amount of time for cloud-based than for on-premise Task requires less time for cloud-based than for on-premise Source: Infor Consulting Services

Advantage #5: Lower Total Cost of Ownership (TCO) Most organizations significantly reduce their TCO by transitioning to cloud Total Cost of Ownership Cost Saving Areas Hardware Servers, Virtual Machine Licenses Storage Hardware implementation Infrastructure Database, hardware, OS maintenance costs Real Estate, power and cooling Disaster Recovery, backup hardware Risk Disaster recovery IT Resources Technical IT resources that support the Infor applications (DBAs, System Admins, Infrastructure support) Application Maintenance Annual application maintenance Patches SaaS Subscription All inclusive cloud subscription Annual Savings How does cloud lower the total cost of ownership Reduce supporting infrastructure improves performance of applications while reducing costs spent on hardware and infrastructure Avoid future technical upgrades, reducing consulting services costs Reduce third party consulting and third party licenses Improve productivity of IT staff Reduce the time IT staff spend managing existing or new applications (putting out fires, keeping the lights on) Free up IT staff to focus on strategic activities that deliver superior value to the organization Source: Infor Value Engineering

Other Strategic Benefits of Choosing Cloud Description Value / Opportunity Savings Upgrades Included Fast, effortless and painless upgrades that occur without interrupting your organization Productivity Gains Continuous Improvement Integrated Best Practices Disaster Recovery and Infrastructure Managed by Infor Leverage 99.5% uptime (99.9% historically), and enable a true disaster recovery solution with a minimum of 14 days’ retention Prevention of Data Loss Prevention of Downtime Best-in-class Security Protect your data with best-in-class security protocols, chosen to maximize the data security of Infor’s products Prevention of Security Risks Lower Total Security Spend

Infor CloudSuite Overview On-premise, Hosted, and Infor Cloud Own/Manage Cloud Fixed Costs On Premise Hosted Infor Cloud Infor CloudSuite Subscription Fee License Fee Application Maintenance IT Resources Infrastructure Hardware Applications Applications Applications Data Data Data Middleware Middleware Middleware We have an advertising and design firm that builds most of our slides for us. They know cloud because this technology is our soul purpose. Every application new and old will have a Cloud first focus. We asked them to build the simplest slide show the differences of OnPrem and Cloud. I think they did a good job. Here you’ll see what an OnPrem environment looks like: OnPrem O/S O/S O/S Servers Servers Servers Storage Storage Storage Networking Networking Networking Forester Research - “…survey respondents (with on-premise applications) estimated that they spend an average 72% of the money in their budgets .. supporting ongoing operations and maintenance, while only 28% of the money goes toward new projects.”