Cloud Applications Success: Lessons from Early Adopters

Cloud Business Applications

Cloud Applications Success:Lessons from Early Adopters


Speakers:

Anurag Agrawal CEO & Research ExecutiveTechaisle

2 3/12/2012

Travis PillenCRM Operations LeadSchoolwires

Bill OdellMarketing DirectorDell Cloud Business Applications

“The cloud gives usone of the greatestopportunities we’ve seen in a long history of IT trends to fundamentallychange the way wework and live.”

Michael Dell


Agenda

3 3/12/2012

• Why cloud and why now

• How to start your cloud journey

• Cloud adoption lessons for success

– Vendor selection is a critical step to cloud success

– Adequate planning to avoid deployment challenges

– Integration for maximizing business value

• Schoolwires cloud adoption story

– Business case for cloud CRM

– Adoption considerations

– ROI on cloud project

• Q&A

Global SMB IT Market Research and Industry Analyst organization.

Focused on Tracking the Future of SMBs & Channels.

Delivering forward looking analysis on emerging technologies such as cloud computing, managed services, mobility, social media usage, and virtualization.

Channel partner research coverage provides in‐depth understanding of resellers and distribution channels globally, as well as routes to market.

Develops predictive models and segmentation using Artificial Neural Networks that achieves very high accuracy levels.

About Techaisle

Findings are based on an online study of 400 US small and mid‐market businesses who use cloud business applications.

Respondents were business decision makers (BDMs) and IT decision makers (ITDMs) in companies with 50 to 999 employees.

The objectives were to understand:

Which cloud business applications are being used by SMBs

What benefits SMBs realized by adopting cloud business applications

What SMBs learned from their cloud implementation experience

What are best practices for maximizing the value of cloud applications

SMB Cloud Trends Survey

Cloud offers compelling benefits

83%85%85%

87%

Cloud businessapplications offer superior

TCO

Cloud makes people &business more productive

Cloud is allowing us to gaincapabilities that only largeenterprises previously

could afford

Cloud applications isproviding us with a

competitive advantage

SMBs’ attitude towards cloud computing(% SMBs responded Agree + Agree Strongly)

Base: 400 SMBs using cloud applications

SMBs start with business applications

47%

26%

26%

2%

Started using cloud businessapplications/SaaS first

Started using cloudinfrastructure before cloudbusiness applications/SaaS

At the same time

Not sure

Cloud application vs. Cloud infrastructure

Cloud ApplicationsSaaS ‐ CRM, ERP, project management, BI

Cloud InfrastructureServer, security, back‐up, storage

At the same time

Not Sure


Cloud application adoption is accelerating

2 4

7

2010 2011 Expected 2012

Average number of cloud business applications being used by SMBs


6%

31%

40%

24%

< 1yr

1‐2 years

2‐3 years

More than 3 years

Years using cloud applications

Early Adopters

Reasons for adopting cloud applicationsReasons for adopting cloud applications Benefits realized from cloud applicationsBenefits realized from cloud applications

1. Lower total cost of ownership (applications, hardware, maintenance)

2. Faster deployment of solutions

3. Having the latest features/functionality as soon as they are available

4. Repurposing IT staff to address more critical needs

5. Access to capabilities and features previously outside of reach

1. Faster deployment time

2. Simplified access through a browser from any location

3. Allows IT staff to focus on more important business needs

4. Eliminating the need to upgrade individual users

5. Getting new features automatically without having to go through upgrades

Cloud expectations match reality

Base: 751 SMBs considering cloud applications Base: 400 SMBs using cloud applications

CRM is at the core of cloud adoption

CRM has highest

adoption: 55%

1 in 2 consider CRM to be mission critical

26% of CRM users will add business intelligence

26% of CRM users will add marketing automation


Cloud applications currently used % SMBs

CRM 55%

Project Management 54%

Business Analytics/Business Intelligence 49%

Marketing Automation 48%

Payroll 48%

Human Resources/Benefits & Performance Management 43%

CRM, which includes sales, support and service automation capabilities, is a strong catalyst for improving revenue and customer satisfaction

Cloud adoption lessons for success


Right cloud vendor selectionPlanned deploymentProper integration

SMBs prefer a single trusted vendor

Prefer to procureapplications froma single trusted IT

vendor

Prefer to workdirectly with

different vendors

IndifferentFrom a single trusted IT vendor

From different vendors directly

Indifferent

• “Research for the best and the most reliable vendors”• “Find a vendor with better customer service”• “Look for vendors with the capacity of delivering on time as promised”• “Try to select applications from single vendor”• “We’re in the business for making profit, so we are planning to cut down our expenditure on multiple vendors”

69%

23%9%

SMBs’ preference to procure cloud applications

What some early adopters of cloud applications said in the survey regarding vendor selection:

Base: 140 respondent organizations that used more than one vendor for their cloud business applications


Pain points experienced by early adopters from managing multiple cloud vendors % SMBs

Each deployment has different challenges and issues 58%

Keep track of different SLAs with each different vendor 50%

Explain our business objectives to different vendors 48%

Time-consuming to deal with & manage 44%

Coordinate with multiple vendors for integration 43%

Different response & problem resolution timeframes 42%

We have to manage multiple billings and payments 38%

Right Vendor Selection Avoids Pitfalls

Planning & preparation: Keys to implementation success

49% 41% 40% 36%

6%Longer thananticipated

deployment cycle

Limited integrationwith other applications

Lack of training Lack of customization Other deploymentissues

Types of deployment issues faced by SMBs

• Working with vendors and partners that provide implementation packages rather than lengthy and pricey custom service engagements

Survey respondents mention that quicker deployment can achieved by:


Planned Deployment

Drives Better

Experience

Integration needs to be flexible

1% 3%

ExtremelyUnsatisfied

Unsatisfied Neutral Satisfied ExtremelySatisfied

How Satisfied were SMBs with Integration

48%26% 26%

In‐house staffintegrated the

applications by writingsoftware code

In‐house staffintegrated the

applications by usingthird‐party integration

solutions

Third‐Party integratedapplications

Who Helped SMBs Integrate Cloud Applications

63% 58% 54%35%

Easily modify theintegrationbased on

business processchanges

Enhance existingintegrations

Developintegratedbusiness

dashboards

Integrate moreapplications

What SMBs want from Integration• “Applications could have been better integrated”

• “Integration is the toughest part, so we would focus more on this area”

• “Make integration more seamless and simple”

• “More compatible interoperability”

• “Sound integration”

69%

21% 17%

Survey respondents strongly felt that:

Base: 376 SMBs that integrated their cloud applications with cloud and/or on-premise solutions

Sound Integration Ensures Maximum Productivity

Conclusion: Cloud Adoption is beyond HypeSuccessful cloud implementation strategy is highly dependent upon selection of right cloud vendor, planned deployment and sound integration

Cloud Application Adoption Rising

• Cloud applications have given SMBs tactical & strategic advantages• Cloud CRM is at the center of cloud adoption

Right Vendor Selection Avoids

Pitfalls

• Managing multiple cloud vendors creates multiple problems• Procure best-of-breed cloud applications from a single trusted

vendor

Planned Deployment Drives Better Experience

• Reduced deployment time & proper training equals customer delight• Identify cloud vendors that offer implementation packages

Sound Integration Ensures Maximum

Productivity

• Integration leads to significant benefits• Look for flexible, scalable and quick to deploy integration solutions

without coding

1

2

3

4

Travis PillenCRM Operations Lead

Cloud Adoption Case Study:Schoolwires

About Schoolwires

Overview and MissionBusiness Overview

Content Management Systems for K-12 School DistrictsOver 1,000 school districts and 8 million userswww.schoolwires.com

Experience with Cloud Applications

Schoolwires Centricity2 solution is cloud-based

Cloud ApplicationsMarketo, Yammer, GoToMeeting, and ConcurRecently added Salesforce.com and Dell Boomi

On-Premise ApplicationsMicrosoft Dynamics CRM and Great Plains

Schoolwires Business Case for CRM

MS Dynamics CRM for Sales and Service

On-premise solution slow and rigidCRM as a sales toolGrowing company in a maturing industry

Solution: Salesforce.com for Sales, MS CRM for ServiceIntegrate two systems

20

Cloud Adoption Considerations

Integration3rd Party: Custom or Packaged?Flexibility: business processes changeScalability for future integrations

DeploymentSpeed, support, and flexibility

Vendor SelectionUnderstand our business caseCRM expertiseSchoolwires owns the integration process

21

Return on Investment to date…

Go Live at start of Q2!

Financial Customizations and maintenanceStaff time efficiencies

OrganizationalSystemic harmony between Sales, Marketing, and Services TeamsExploration of additional cloud applications and integrations

22

Planning your cloud project…

IntegrationScalabilityInvolve organizational stakeholders

DeploymentRefine and enhance your CRM business processesSeek outside expertiseDeadlines, milestones, and testing

Vendor selectionUnderstanding your business caseResources beyond implementation

Cloud Business Applications23 Confidential

Existing applicationsExisting applications

Dell Cloud Business Applications

An end-to-end solution….

23 Confidential Cloud Business Applications

DELL SERVICES

SINGLE SIGN-ON

CRM Accounting

HRMarketing

Cross-ApplicationAnalytics

Trusted Applications

SeamlessIntegration

Q & A



For More Information

www.techaisle.com


Tracking the Future of SMBs

www.schoolwires.com


www.dellcloudapplications.com

Thank you

Cloud Applications Success: Lessons from Early Adopters

Technology

Transcript of Cloud Applications Success: Lessons from Early Adopters