1. Competing Against the Cloud

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

3. Cloud Definitions

4. 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)

5. 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

6. 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

7. Comparing SaaS with On-Premise

8. 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

9. 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

10. 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

11. Competing Against:
Host Analytics

12. 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

13. 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

14. 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

15. 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

16. 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

17. 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

18. 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

19. 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

20. Host Compete Recommendations
Customer should consider longer TCO past 3 years, SaaS is higher cost
Late 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?

21. Competing Against:
Adaptive Planning

22. 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?

23. 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