Treasury in the Cloud Bob Stark – Vice President, Strategy September 17, 2014

2 © 2014 Kyriba Corporation. All rights reserved. PROPRIETARY & CONFIDENTIAL. Topics of Discussion What is cloud What isn’t cloud Why do we care (in treasury)? Cloud checklist – what do I really need? How to impress my IT team

3 © 2014 Kyriba Corporation. All rights reserved. PROPRIETARY & CONFIDENTIAL. The cloud - definition Source: National Institute of Standards and Technology (NIST)

4 © 2014 Kyriba Corporation. All rights reserved. PROPRIETARY & CONFIDENTIAL. On-premise vs. ASP vs. SaaS SaaS Vendor Company 1Company 2Company 3 ASP Vendor Hardware Company 1Company 2Company 3 Vendor On-premise Company

5 © 2014 Kyriba Corporation. All rights reserved. PROPRIETARY & CONFIDENTIAL. How SaaS and ASP differ Source: ThinkStrategies Inc. Scalability and efficiency are why most organizations invest in technology in the first place ASP is not scalable or efficient:

Why do we care?

7 © 2014 Kyriba Corporation. All rights reserved. PROPRIETARY & CONFIDENTIAL. Source: Forrester “The Changing Cloud Agenda” Benefits delivered by cloud

8 © 2014 Kyriba Corporation. All rights reserved. PROPRIETARY & CONFIDENTIAL. Reduced Cost Business Continuity Reliability Pay for what you need No internal hardware or IT costs No upgrade costs (external or internal) Full redundancy: no single point of failure Higher availability: across all time zones Improved RTO, RPO for minimized disruption Always on current release Newest software tools; no obsolescence Economies of scale -> vendor viability Implementation and Support Quicker implementation; no need for IT Ease of support; every client on same version No individual configuration/support issues Security Relocates data away from internal IT environment Multiple levels of physical/virtual security Externally audited systems and controls Benefits delivered by the cloud

9 © 2014 Kyriba Corporation. All rights reserved. PROPRIETARY & CONFIDENTIAL. Key component of business continuity is ‘disaster recovery’ Effective business continuity means: Synchronized data centers with dedicated link Full redundancy and disaster recovery SLA of 99.9% uptime RTO <4.0hrs RPO <30 min Benefits – Business Continuity

10 © 2014 Kyriba Corporation. All rights reserved. PROPRIETARY & CONFIDENTIAL. 1)Application Security  Weak passwords are the easiest entry point to hack a software solution and access data  Cloud technology offers strong password controls: – Password timeouts, resets, history, alphanumeric requirements – Virtual Keypad – Two-factor authentication (SMS or Yubikey)  These controls may eliminate fraud and are stronger than other solutions: ASP or installed Benefits – Security

11 © 2014 Kyriba Corporation. All rights reserved. PROPRIETARY & CONFIDENTIAL. 2)Data Security  Treasury data is safer when hosted externally than within a company’s internal servers (according to IT) – 80% of treasury professionals have violated internal procedures by being in the server room where internal treasury data is hosted – 90% of data fraud is internal or socially engineered – Between external hosting & strong password controls, treasury data is safer Benefits – Security

12 © 2014 Kyriba Corporation. All rights reserved. PROPRIETARY & CONFIDENTIAL. 2)Data Security  Cloud technologies offer numerous safeguards: – Encryption of all data in transit between systems, especially externally – Hosting within SOC1 certified data centers that feature 24/7 security, biometric access – Separation of duties & other policy driven protections to restrict access to hosting infrastructure and client data – Numerous firewalls to protect externally and between tiers – Scheduled penetration testing by industry leading providers Benefits – Security

13 © 2014 Kyriba Corporation. All rights reserved. PROPRIETARY & CONFIDENTIAL. 2)Data Security  Treasury data is safer when hosted externally than within a company’s internal servers (according to IT) – 80% of treasury professionals have violated internal procedures by being in the server room where internal treasury data is hosted – 90% of data fraud is internal or socially engineered – Between external hosting & strong password controls, treasury data is safer Benefits – Security

Treasury in the Cloud Checklist

15 © 2014 Kyriba Corporation. All rights reserved. PROPRIETARY & CONFIDENTIAL. What you expect of a treasury solution New features and capabilities several times per year Bank Connectivity Integration Market Data Functionality Upgrades To/From Internal Systems (e.g. ERP) and External Systems (e.g. Trading Portals) Market rates and curves (maybe ratings or KPIs) Multiple Banks Multiple Protocols Multiple Formats Cash, Treasury, Payments, Working Capital, and Risk Management

16 © 2014 Kyriba Corporation. All rights reserved. PROPRIETARY & CONFIDENTIAL.  Upgrades  Frequent (3 to 4 times per year)  100% managed by vendor; no user or IT involvement  No additional costs  Support  Proactive monitoring  All clients on same release – vendor supporting one version  Mobility  Functions on any device  No additional ‘accompanying’ software  Cost  Software subscription  Menu of modules; can add/subtract easily  Quick, cheap, easy implementations What you expect of a treasury SaaS solution

17 © 2014 Kyriba Corporation. All rights reserved. PROPRIETARY & CONFIDENTIAL.  Security  Two-factor authentication  Penetration testing reports, provided to you  Data encryption  Physical safeguards to prevent data and hardware access  Audit  SOC 1 audit report for application, provided to you  SOC 1 audit report for data center, provided to you  SOC 2 reporting, also provided to you  Business Continuity  Multiple Data Centers  Redundant solution – not just data backup  RTO and RPO to meet Treasury SLA’s (e.g. 30 min of data loss or a few hours of downtime only)  High uptime (e.g. 99.9%) with penalties for non-compliance What you expect of a treasury SaaS solution

How to impress your IT Team

19 © 2014 Kyriba Corporation. All rights reserved. PROPRIETARY & CONFIDENTIAL. How to impress your IT team Top 5 Icebreakers when chatting up your local IT resource: 1)Is this SaaS, PaaS or Infrastructure as a Service? 2)What kind of cloud deployment is this? 3)Steve Jobs, a priest, and a Zebra walk into a bar… 4)What is the RTO and RPO? You know we can’t live with an RPO of more than 30 minutes…” 5)“That’s not cloud! That’s only hosted software.”

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