1. Prophix providing the lowest TCO
Important total cost of ownership considerations when looking for a solution:
Keep control of your data
Expand your use of CPM more cost effectively
Easily access data from multiple, evolving source systems
Simple “exit strategy”
Important to know that what all cloud vendors will do (and Adaptive is no exception) is to play up the total cost of ownership.
Doing an apples to apples comparison over 3-year ownership, with services, inevitably what I have found in the last 6 months here is that the average break-even is about 3 ½ years
Our own experience:
Prophix went looking for CRM system and it narrowed down to 2 vendors – Microsoft – $47,000 for on-prem system and the cloud-based Salesforce.com – $18,000 annually. Based on the evaluation at the time and the momentum that SF had in market, etc… we selected to go with SF. Fast-forward 7 years later where we are now using SF the way SF was meant to be used, as a platform, where we manage the sales operations with this system. We are a pretty small company (relatively speaking), and today our annual bill exceeded $200,000 per year
If we were to switch and ask for the data from SF, the data would be atrocious. It would be this comma-delineated file that would take forever to synchronize with our new system. Think about this with the financials… you’re giving control of your data to that other company (saas based vendor)
SaaS is an extremely profitable business (and Prophix is moving in that direction)
Our priority is based in large part on our customers driving us to focus on functionality, visualizations and ease-of-use. That’s where we’ve put the wood behind the arrow. Longer term, we’re working on our cloud strategy
CPM is a platform. Initially you’re bringing it in to do one function. Then you expand to 2 cubes and additional users, you could expect your cost to double immediately. This is the reality of software as a service.
If cost-of-ownership matters to a customer – and it generally does – the on-prem solution, runs on low-cost server, will easily be higher in cost-benefit analysis than embarking as software-as-a-service.
That said, we will soon offer our solution to our prospects as a service OR on premise – it will be their choice. This will allow customers to consume Prophix the way they want to consume it.
“If you want to be in control of own destiny, not be tied down to fixed solution, multi-tenant solutions, if you want flexibility, control, etc – then Prophix is the right choice.”
Security is an issue in that you’re in the cloud. It’s financial data, it’s pretty sensitive. CFO’s are understandably nervous about the data being out in the cloud. That’s another reason why a “hybrid” option is the way we’ll go.
if a company is integrating with anything outside GL, then it becomes a nightmare to manage. CPM is about aggregation of data from all your systems in order to achieve integrated financial planning. This will put you in awkward situation if you have to go to Adaptive/Host each time you make a change in your ERP.
Additionally, the saas vendors typically require a user license to access each different module. You’d need different licenses for the same person to access the reporting module, budgeting module, etc. Whereas we say you can roll it out at your leisure.
They will also do a data charge – as soon as you exceed your 2G (?) limit you’ll have another charge. This is how it goes from $18k/year to $200k/year. In fact research has revealed that the average subscription price goes up 25% per year, year in, year out.
If all that matters is the annual cost THIS YEAR, not total cost of ownership over period of time, and they’re doing comparison between Prophix and 1 year of SaaS solution… you’ve got to sit there and say, “Do you have Capital Budget”… if I show you Total Cost of Ownership, if I have better product to meet your needs, and if you determine from your questioning that they’re looking for quick, fast, dirty solution, then get out of the deal! You’ll be wasting your time.
Remember, terminating maintenance contract with perpetual software – you can still use the software. Terminating subscription contract – you no longer use the software NOR do you have access to your data.
Important to consider “your exit-strategy with a SaaS” (Gartner paper)

2. Enablement Notes (1)
Important to know that what all cloud vendors will do (and Adaptive is no exception) is to play up the total cost of ownership.
Doing an apples to apples comparison over 3-year ownership, with services, inevitably what I have found in the last 6 months here is that the average break-even is about 3 ½ years
Our own experience:
Prophix went looking for CRM system and it narrowed down to 2 vendors – Microsoft – $47,000 for on-prem system and the cloud-based Salesforce.com – $18,000 annually. Based on the evaluation at the time and the momentum that SF had in market, etc… we selected to go with SF. Fast-forward 7 years later where we are now using SF the way SF was meant to be used, as a platform, where we manage the sales operations with this system. We are a pretty small company (relatively speaking), and today our annual bill exceeded $200,000 per year
If we were to switch and ask for the data from SF, the data would be atrocious. It would be this comma-delineated file that would take forever to synchronize with our new system. Think about this with the financials… you’re giving control of your data to that other company (saas based vendor)

3. Enablement Notes (2)
SaaS is an extremely profitable business (and Prophix is moving in that direction)
Our priority is based in large part on our customers driving us to focus on functionality, visualizations and ease-of-use. That’s where we’ve put the wood behind the arrow. Longer term, we’re working on our cloud strategy
CPM is a platform. Initially you’re bringing it in to do one function. Then you expand to 2 cubes and additional users, you could expect your cost to double immediately. This is the reality of software as a service.
If cost-of-ownership matters to a customer – and it generally does – the on-prem solution, runs on low-cost server, will easily be higher in cost-benefit analysis than embarking as software-as-a-service.
That said, we will soon offer our solution to our prospects as a service OR on premise – it will be their choice. This will allow customers to consume Prophix the way they want to consume it.
“If you want to be in control of own destiny, not be tied down to fixed solution, tenant solutions, if you want flexibility, control, etc – then Prophix is the right choice.”
Security is an issue in that you’re in the cloud. It’s financial data, it’s pretty sensitive. CFO’s are understandably nervous about the data being out in the cloud. That’s another reason why a “hybrid” option is the way we’ll go.

4. Enablement Notes (3)
If a company is integrating with anything outside GL, then it becomes a nightmare to manage. CPM is about aggregation of data from all your systems in order to achieve integrated financial planning. This will put you in awkward situation if you have to go to Adaptive/Host each time you make a change in your ERP.
Additionally, the saas vendors typically require a user license to access each different module. You’d need different licenses for the same person to access the reporting module, budgeting module, etc. Whereas we say you can roll it out at your leisure.
They will also do a data charge – as soon as you exceed your 2G (?) limit you’ll have another charge. This is how it goes from $18k/year to $200k/year. In fact research has revealed that the average subscription price goes up 25% per year, year in, year out.
If all that matters is the annual cost THIS YEAR, not total cost of ownership over period of time, and they’re doing comparison between Prophix and 1 year of SaaS solution… you’ve got to sit there and say, “Do you have Capital Budget”… if I show you Total Cost of Ownership, if I have better product to meet your needs, and if you determine from your questioning that they’re looking for quick, fast, dirty solution, then get out of the deal! You’ll be wasting your time.
Remember, terminating maintenance contract with perpetual software – you can still use the software. Terminating subscription contract – you no longer use the software NOR do you have access to your data.
Important to consider “your exit-strategy with a SaaS” (Gartner paper)