Cloud is about how you do computing, not where you do computing. - Paul Maritz, CEO of VMware

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1 Cloud is about how you do computing, not where you do computing. - Paul Maritz, CEO of VMware

2 ABOUT OUR AUTHOR The Attivo Group Based in Irvine, CA and founded in 1992, The Attivo Group is a leading business process consulting firm and ERP software reseller. Specializing in the manufacturing and distribution industries, The Attivo Group has over two decades worth of experience in business process analysis, enterprise software integration and ongoing technical support for each of their clients. The Attivo Group specializes in ERP software packages like Macola ES, Sage 100, Microsoft Dynamics and QuickBooks Enterprise Suite. LEN REO Len Reo developed and grew a consultancy practice into one of the largest reseller organizations for Microsoft, Sage, Exact Software and Intuit. He has provided consulting and support services for improving processes and gaining efficiencies with Manufacturing, Distribution and Service based businesses. Len is known for leadership in utilizing software systems to optimize business processes, streamline operations and reduce costs. He has also led companies through ISO certification, and implementation of Lean Initiatives. Linkedin.com/in/lenreo

3 EXPECT TO LEARN o Basics of Cloud Computing o Cloud Computing Security o Benefits of Cloud Computing o Is Your Business Ready for the Cloud?

4 BASICS OF CLOUD COMPUTING There was a survey done recently of average people on the street about cloud computing. A disturbing number of them (51%) believed that bad weather has an adverse effect on cloud computing. While cloud computing sounds sexy from a marketing perspective, it isn t exactly the best description of what it is. Cloud computing is any computing that you do on the internet. If you use like Gmail or Yahoo in your personal life, you already use cloud computing. The software that you are using to access these applications are hosted online and you access them via a login and password. Online banking is another good example of cloud computing at work. Essentially, any software that you don t have to download onto your hard drive, and which you access while connected to the internet, is an example of cloud computing. But where is the cloud? Even though cloud hosted software is accessed online, all cloud computing applications are hosted at a physical location. Data centers are essentially highly controlled and secured warehouses with rows and rows of servers. Those servers can house anything from the website you use to read the morning news to the software you need to run your quarterly financial reports. These data centers are climate controlled and typically have backup generators that can keep them online for several days in the event of a natural disaster or massive power outage. There are several layers of virtual and physical security at these sites to keep the information that they are storing safe.

5 BASICS OF CLOUD COMPUTING Two Types of Cloud Software There are two very distinct types of software that can be found in a cloud environment. One is a traditional software application that you would typically install on your computer. Instead, that software is downloaded to a remote server that you can access from the internet. A good example of this would be to imagine Microsoft Office being hosted remotely. You can still access it via the internet, but you wouldn t need to worry about installing it onto your personal computer. In other words, you can install it on your PC, or you could access it via the internet. The other type of cloud software is known as Software as a Service, or SaaS. SaaS applications are made available exclusively via the internet. There is no disc or program made available that you can download onto your personal computer. If you ve ever used Google Docs, this is a perfect example of a SaaS product that would be an alternative to having Microsoft Office loaded on your computer. The cloud services companies of all sizes; the cloud is for everyone. The cloud is a democracy. - Marc Benioff, CEO SalesFource.com Can My ERP System Be Accessed from the Cloud? There are several ERP software vendors that have developed ERP software to be delivered as SaaS applications. However, you might already be invested in an ERP package that is serving the needs of your company quite well and running on your own in house server network. You can still leverage the benefits that Cloud Computing can deliver. With a dedicated cloud hosting service, you can take the same ERP applications that your business uses and move it onto a remote cloud server and have no need to retrain employees on a new ERP software package. Essentially, your traditional on premise ERP system can be transitioned to a Cloud-based application.

6 CLOUD COMPUTING SECURITY How Do I Access The Cloud? If you ve ever logged into an account then you ve experienced something similar to accessing a cloud hosted business application. If your company were to move your business applications -like an ERP system - into a cloud environment, each employee that needed access to that software would be given a unique username and password. With that login, a user can access their cloud hosted software from any device with an internet connection in the world. How safe is that though? The security of a cloud hosted platform far exceeds what an average small or midsized company can achieve with their own internal IT infrastructure. Your data and software is stored in a data center with the absolute best in breed firewall and internet protection in place. In addition, those data centers have live in person security on site 24/7. Most companies that host everything on internal servers don t have the budget to provide themselves with the security measures that most cloud hosting solutions offer. Because the security is built into the cost of a cloud hosted solution it is also more cost effective than trying to generate that level of peace of mind on your own. Just like water from the tap in your kitchen, cloud computing services can be turned on or off quickly, as needed. - Vivek Kundra, CIO in the Obama administration

7 BENEFITS OF CLOUD COMPUTING We ve already touched on some of the bigger selling points of a cloud hosted solution, with accessibility and security being two of the major benefits. Moving to the cloud can also help productivity, facilitate disaster recovery and be a much more cost effective strategy than other IT solutions available. Cost Benefit The immediate and obvious way that cloud hosting is more cost effective than hosting in house is the ability to eliminate the need to invest in new servers every 3-5 years. In addition to completely erasing that recurring expense, the cost to manage that hardware is also eliminated. This allows your current IT department to focus on other issues, such as improving the overall productivity of your entire company. Or, you may simply choose to reduce your IT staff or outside IT service costs. In addition, a cloud hosted solution typically includes automatic software updates and patches, again reducing costs often associated with hosting an ERP solution on your internal machines. It is also much easier to grow with a cloud hosted solution, as the ability to increase data storage space doesn t require purchasing higher end servers. It s a small incremental cost that would be added to your invoice. Conversely, you can quickly scale down your requirements to support seasonal demands for IT needs. Accessibility With a cloud hosted solution, you can access your ERP system and other business applications from any device with an internet connection. All you need is a username and a password to access your system. And because of the enhanced security provided by a cloud solution, you can work from anywhere safely.

8 BENEFITS OF CLOUD COMPUTING Moving to the cloud makes it easier for employees to work from home if needed and can help avert disasters when traveling for business, as no important documents or files can ever be accidently left behind because they are accessible from anywhere. Businesses with multiple locations can serve each of them easily, and quickly bring new locations or offices online with fully functional systems in place. Disaster Recovery Natural disasters and accidents are a fact of life. They will happen. Whether or not you are a victim of a disaster is in large part, just a matter of luck. By keeping your data and software hosted in a secure data center, it ensures its safety. Even if the data center itself is hit by a natural disaster, cloud hosting facilities are far more prepared to deal with disaster. With redundant backup available in other remote locations, your systems can continue operating with minimal disruption. In fact, data centers typically provide 99%+ guaranteed up times, meaning that even when a crisis strikes, you can count on your systems being ready to go when you need them. All of these advantages ultimately lead to improved productivity. Decreased downtime for your systems as well as the ability to work remotely offers countless practical benefits to your company s productivity. Freeing up your IT team to work on issues other than server maintenance and upkeep is another productivity side effect of moving into the cloud. Ultimately, the greater the productivity the greater the revenues generated. When combined with the reduced overhead costs of a cloud solution, it is easy to see why ROI on cloud hosted solutions typically far outpaces ROI on traditional IT approaches.

9 IS YOUR BUSINESS READY FOR THE CLOUD? There are a number of factors to consider before moving your business into the cloud. The future of business does seem to be headed towards the cloud, but when to pull the trigger on such a solution is unique to every individual company. While cloud computing is typically more cost effective than other options in the long run, there are certain factors that can make a short term ROI not seem so attractive. For example, if a company has just upgraded their IT infrastructure and invested in new servers, it is probably more prudent to try and get the most ROI out of that investment before shifting to the cloud. Unless, of course, there are other reasons such as a major acquisition or other game-changing event occurring. However, as your servers life begins to reach its expiration date, moving to the cloud becomes a more realistic option with better short term ROI benefits. Once a company reaches that stage there are several factors to consider. Your Internet Connection Because cloud hosting is accessed entirely online, your cloud solution is only as good as the internet connection being used to access it. It is important to not only make sure that you have a fast enough internet connection at your place of business to allow for your employees to work without interruption, but also to make sure that you have a redundant internet connection in place if constant connection is a necessity for your business.

10 IS YOUR BUSINESS READY FOR THE CLOUD? Are Your Employees Set up to Work Remotely? One of the great features of moving your business applications to the cloud is that users can access your systems from any device in the world with an internet connection. But there are some cloud solutions that require the use of a mobile app if you want to access information on a smartphone or tablet. It is important to make sure that your employees have these apps installed ahead of time on their devices before they are in front of a potential client or customer. Home work stations must also be set up correctly. While your office computers likely have protections in place for your internet service, it is important to make sure that your employees have the same security, such as anti-virus and malware protection, set up on their home computers if they intend to work remotely. Conclusion As we have illustrated, there are several factors to consider before a company decides to move into a cloud hosted solution. Both short term and long term ROI need to be taken into account. So does the decision on whether or not to move existing applications into the cloud or whether or not to switch to a SaaS model. Overhead costs, productivity, security and preparedness are all items that must be thoroughly investigated before making a switch. Whether vetting those factors is done internally or with the help of an outside consultant, knowing the facts about your cloud computing options will ultimately save you money in the long term.

11 BUSINESS MANAGEMENT SOFTWARE Process (and Profit) Improvement Specialists Sign-up for a free initial one hour Needs Analysis, and we'll find out what process improvements could be hidden within your organization and perhaps identify a if cloud computing is a good choice for your business. We ll also help you identify what steps you need to take to improve profits. During this time together, we'll discover: Where waste is causing you to leak profits The complete inventory of your current systems & processes What initial steps make sense to take in order to improve processes & profits No obligation just a chat: bit.ly/tagsbetterprofits