ABC Company has been hearing a lot about the cloud and it has piqued their interest. They are a small firm of just 10 employees and currently use multiple spreadsheets to manage and track their business and financial activity. ABC Company knows the benefits of SaaS ERP by reading online resources, but they want to take the next step to find out more. So ABC Company first begins to seek out the ERP solution that is right for them, then they start contacting partners that can help deploy the solution in the way that fits ABC Company’s needs.

When they’ve narrowed down the right ERP solution along with the right ERP solution provider, they know the questions to ask. First of all, they communicate their current tracking process and business requirements. They ask, “Is the transition from excel spreadsheets to SaaS ERP easy to accomplish?” The partner responds that transition from spreadsheets to SaaS ERP is as smooth as it gets. This news makes ABC Company want to begin right away, but first they create a long-term budget plan to make sure a subscription based solution will fit their budget now and long into the future. They don’t need any surprises down the road. Once they realize it will work for them, they work hand in hand with their partner to get their SaaS ERP solution in place. Although some sources say cloud deployments are quick and easy, ABC Company makes sure to take their time. They know patience will help ensure the right functionality from their SaaS ERP solution.

This hypothetical situation may or may not be where you’re company is at. But a few key lessons to take away are to make sure to map out a long-term budget plan and be patient. Similar to any other software deployment, you can’t rush it. If you have any questions about a SaaS ERP solution, please contact us at Cargas Systems.

By Jullie Fuller with Cargas Systems, Microsoft Dynamics GP Partner

With over 400 successful implementations and a 95% customer retention rate, Cargas is one of the largest Microsoft Dynamics partners in Pennsylvania.

When Transition to Software as a Service (SaaS) ERP Model is a Smooth Process is a post from: ERP Software Blog

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1. Cloud Identity Management is Lacking

Companies that have existing identity services running behind their firewalls may not find SaaS integration an easy proposition. Compatibility in this regard is a little behind the curve. Some companies are working on this, developing third-party applications that will allow IT departments to extend authentication into the cloud through a single log-on. Ping Identity and Symplified are two examples of this.

This leads to another problem as well. The whole point of moving to SaaS is to reduce complexity. Buying more applications from more vendors only reintroduces the complexities that you’re probably hoping to avoid, not only for your infrastructure but your users as well. Currently, SaaS’s evolution and adoption have outpaced its authentication abilities.

“Managing identities and access control for enterprise applications remains one of the greatest challenges facing IT today,” a statement issued by the Cloud Security Alliance said. “While an enterprise may be able to leverage several cloud computing services without a good identity and access management strategy, in the long run extending an organization’s identity services into the cloud is a necessary prerequisite for strategic use of on-demand computing services.”

2. Industry Secrecy

While vendors for cloud software naturally argue that their systems are far more secure than traditional infrastructures, they are disquietingly secretive about their security procedures. When questioned about this, the common response is that this is – oddly enough – done to protect the security of their systems. This may sound innocent enough, but several analysts claim this is a bad sign.

Specifically, analysts from the Burton Group have challenged Amazon’s Chief Technical Officer (CTO) with not being forthcoming enough of the company’s security practices, stating that when customers don’t know enough, they should assume the worst. Microsoft, on the other hand, has done a reasonable job in proving their security according to the analysts.

3. Open Access Increases Convenience but also Risk

Software as a service capitalizes on all the platforms now offering internet connectivity. With a distributed platform, workers or clients can access their accounts from cell phones, netbooks, or home computers. This freedom is a great utilization of current technology, but of course opens up any system to some risks that didn’t previously exist.

“Because of the nature of SaaS, it’s accessible anywhere,” Symantec Senior Vice President Rowan Trollope said. “If I decide to put my e-mail on Gmail, an employee could log in from a coffee shop on an unsecured computer. It’s one of the benefits of software-as-a-service, but it’s also one of the downsides. That endpoint isn’t necessarily secure. The data is no longer in your walls in the physical sense and in the virtual sense.”

There are a few measures one can take to mitigate this exposure. IT departments can restrict what IPs can access the system, and employees can be educated about what sorts of access are secure and which should be avoided.

By ERP Software Blog Editors,  Directory of Microsoft Dynamics ERP Experts

Top 3 SaaS Security Issues and Risks is a post from: ERP Software Blog

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With so many software solutions being offered in a Software as a Service (SaaS) model, including Microsoft Dynamics, and all the potential benefits of lower costs, better security, and better up-time; there are some serious drawbacks with improving business processes if the right environment for serving your software applications is not chosen.  So what six areas do you need to be aware of to make the right decision to move your organization forward with business process improvement in this cloudy world?

First, let me define the scope of my conversation here.  The focus of this post is on ERP software applications (this can also be applied to CRM applications as well as a wide range of other software applications).

Second, below is a list to help you understand the multiple hosting options for your ERP and/or CRM software. 

1. Hosted internally and you own the license.
2. Hosted externally by a service provider and you own the license.
3. Hosted externally by a service provider and you rent the license in a shared software application environment with other organizations (known as SaaS or Cloud environment).
4. Hosted externally by a service provider and you rent the license in a dedicated software application environment (also known as SaaS or Cloud environment).
5. Combinations of the above.

Third, compare the cost of the above choices.  This may require you to find a vendor who can provide you all the software hosting cost for the choices above, like InterDyn – Remington Consulting, or you may need to work with multiple vendors.  The analysis needs to include all costs associated with each alternative over a period of 5 to 10 years.

If you are evaluating new applications and the capabilities, support, and vendor viability is not materially different, I would suggest adding each of these different applications into the analysis.  You may be surprised on how much the 5 to 10 year total cost analysis might vary between the selected software applications on the different hosting options and licensing options. 

Regarding what should go into your cost analysis; I will save for another day of sharing.  The big benefits and cost savings for Saas or Cloud environments is within the improvement of business processes.

Fourth, prevent current automated business processes from being broken.  When changing the hosting of all or part of your software applications externally, beware of breaking business processes in the following areas:

1. Integration with your office applications (i.e. Microsoft Office Excel, Word, Outlook, Office Communication Server, etc.).
2. Integration with your Intranet application (i.e. SharePoint).
3. Integration with other internal business applications.
4. Integrations with other external business applications hosted by customers, vendors, partners or compliance organizations.
5. Support of mobile devices.
6. Support for customizations.
7. Support for custom reporting.
8. Support for add on applications to your ERP or CRM software.

Many of the issues with integration may not be apparent, because when all these applications are hosted internally you would not experience the security, technical, and configuration limitations of SaaS providers.  To help with many of these issues SaaS providers provide dedicated application environments that you can subscribe to.  However, even these environments are not without limitations.

Fifth, prevent the inability of automating future business processes.  Get your crystal ball out and plan ahead for your business process improvement initiatives.  Make sure the environment you are about to enter into does not prevent these processes from being fully automated.

The last and sixth point is to perform a cost-benefit analysis on the software application hosting options above.  Quantify to the best of your ability the benefits lost if a hosting option breaks an existing automated business process, or prevents a future one from happening. Focus on costs and benefits that are material and that are different between the alternatives.  Don’t waste your time on costs and benefits that are the same for the alternatives you are considering. 

In summary, to keep your head above the clouds, evaluate carefully your options and you will not get lost in this new frontier; you could even shine!

By Tad Remington, President, InterDyn – Remington Consulting, Microsoft Dynamics Healthcare and Life Sciences Hosting Partner

Is Your Head in the Clouds? ERP Hosting Insight… is a post from: ERP Software Blog

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• “SaaS adoption has moved past the ‘tipping point’”
• “A new ecosystem is forming around Cloud computing that will transform the IT sector.”
• “SaaS is not an optional disruptive technology.”
• “Cloud, SaaS and Mobility are helping to make the “boundary-free enterprise”

In a nutshell, subscription-based software and services are getting stronger and stronger, offering more and more benefits to businesses.  For example, nine out of ten companies plan to grow their use of “Software as a Service,” according to the Gartner Group.  Should you be on this list?  Consider the following:

Business Drivers

Businesses of all sizes are moving to SaaS because of lower upfront costs, shorter implementation times, less implementation risk, reduced need for hard-to-find in-house technical resources and more flexibility to right size systems (up or down).  SaaS has a proven track record of reducing ongoing IT operations costs, freeing up capital and resource to focus on driving the business forward to new advantage and competitiveness.

Businesses are adopting SaaS as ‘insurance’ against business disruption and security threats.  They’re doing this by taking advantage of the most advanced, comprehensive, and easy to use data backup/restore, virus/spam protection, device recovery services – all automatically and without having to purchase a single piece of software.

Businesses are using SaaS tools to run their businesses better.  Whereas in the past, small and medium businesses would lag behind the technology advantages that larger businesses could afford. SaaS levels the playing field for customer management, manufacturing and distribution, HR/payroll, accounting, banking, collaboration, and productivity.  Small and medium businesses, through SaaS, have access to the latest, most powerful, and cost effective technology without any capital investment or the need for ‘in-house’ technical expertise.

The adage that ‘old is new again’ is true.  Return on investment, risk mitigation, total cost of ownership, and a focus on the business remain central to technology discussions.  SaaS has proved it’s worth using these traditional criteria.

Where is the fit?

An additional, recent survey pointed to collaboration products of all sorts as the top application area for SaaS based solutions, with human resources and customer service next on the list. Finance and accounting moved up from 10^th place to 5^th place in 2010 – one indicator that SaaS is on the move from the edges to the core of the business as the technology continues to mature.

For mid-sized companies, a mix of in-house and SaaS based solutions has been demonstrated by True Religion jeans. True Religion Jeans found that vendor experience and the ability to “try before you buy” testing of potential SaaS solutions improved operation and avoided common adoption mistakes.  True Religion also realized the benefit of being able to spend more time focusing on the business needs instead of on technology.

For small companies, the savings are even more pronounced.  In a recent presentation, Tom Kelly CFO/CIO at Kardia Healthcare discussed his experience with SaaS applications when he was with 2^nd Wind.  As an exercise equipment company, 2^nd Wind was able to replace virtually all the in-house systems with SaaS solutions and reduced costs by 61%.

The bottom line:

More and more businesses are exploring, understanding, and implementing Software as a Service to drive their bottom line. Isn’t time to explore if SaaS is right for your business?

SaaS is no longer a theory, but is a viable reality that has demonstrated business and financial benefits.  Small and medium business, today, benefit the most through the elimination of capital spend, reduction in technical resource requirement, increased business continuity and safety, and lowered overall IT cost.

By NextCorp, Ltd., Microsoft Dynamics GP Partner serving South Texas

Thinking About Software As A Solution (SaaS)? is a post from: ERP Software Blog

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1. Where is the computer that will be used to serve my application?
2. Is the data center where that computer is located staffed 24 hours a day, seven days a week? What staff is on-site?
3. What physical security measures are in the data center?
4. Is there redundant power, such as batteries and generators?
5. What cooling and fire suppression systems are available?
6. How many Internet service providers (ISPs) do you buy connectivity from?
7. Do you have a disaster recovery plan if your data center becomes unavailable?
8. Are servers dedicated to each customer, or do multiple customers share a single server?
9. What do you back up and how often? How long do you keep backups? Do you store backups off-site?
In addition to asking these questions, evaluate how well the vendor has integrated its service operations into its core business. Some vendors are only experimenting with the cloud computing model due to its immense popularity. For many, it is an operational change that is inconsistent with their culture.  If this is the case, they will not be able to make customers successful if the processes are not well developed, mature or universally accepted.

I got these questions from the article: Why Companies Must Embrace Cloud Computing by By Curt Finch,  and April Boland of Journyx.  I think they did a very nice job of evaluating the Cloud Computing option in this article and touched on these topics: What is the Future of Cloud Computing?  Can You Really Trust the Cloud? How Cloud Computing Can Save You Cash.

If you are considering hosting Microsoft Dynamics GP, contact CAL Business Solutions for recommendations of data centers we have already interviewed! We can help you evaluate your options for deploying Dynamics GP including on site, hosted and subscription models.

By CAL Business Solutions, Connecticut/Massachusetts Microsoft Dynamics GP Accounting Software Experts

9 Interview Questions to Choose the Right ERP Software Data Center Hosting Provider is a post from: ERP Software Blog

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Efficient collaboration is rarely simple and it can take many forms. Some needs are internally focused, for instance, keeping employees current on corporate policies and procedures. Others require collaboration with external constituents, such as partners, suppliers, or customers. Some needs are short term, as when people need to come together to manage a project, while other requirements are ongoing, like when groups need to access, share, and update documents, databases, calendars, and directories. And, businesses may need to collaborate within one physical location, or with others at numerous locations around the world.

Because effective internal and external collaboration is vital to a successful business, larger businesses build or buy collaboration solutions that are managed in-house. While this model may work for some, these solutions rarely meet the needs of smaller businesses that often lack the resources necessary to deploy, manage, and maintain them. The costs involved, for example, from upfront licenses, hardware, and integration expenses, to ongoing expenses for maintenance, upgrades, and support are often prohibitive for most small business owners.

Software-as-a-Service – The Small Business Alternative

SaaS allows businesses to subscribe to software over the Web and pay for it on a monthly basis. The services can be accessed online from anywhere with an Internet connection, so remote and mobile workers can always be connected to the home office. Furthermore, because the solutions are hosted, many of the upgrades and maintenance requirements can be automated – a big benefit for small businesses with limited IT resources.

Compared with a traditional licensed software model, software-as-a-service offers businesses many distinct advantages that are quickly driving adoption:

• Rapid Deployment: Rather than taking months to implement, businesses can be using the solution in a matter of minutes.
• Less Expensive and More Predictable Costs: Companies pay a set monthly or annual subscription fee, typically based on the number of users. In addition to drastically reducing upfront hardware and software purchases, SaaS also eliminates the need for specialized IT talent, and reduces ongoing costs for maintenance, upgrades, and support.
• Faster ROI: By reducing deployment time as well as initial and ongoing capital investments and staffing costs, small business customers can reduce risk and achieve a faster return on investment.
• Low or No Risk Trials: Business can test-drive online services over the Internet, enabling a small business to try the application and see if it fits their needs before making a broader commitment.
• Ease-of-Use: Web-based applications use familiar Web interfaces that are easy for administrators and users to navigate, resulting in higher user adoption and reduced training costs.
• More Responsive Service and Support: Using a “one-to-many” model, SaaS providers can more easily support, manage and upgrade their solutions. They can see how customers use their services in real-time, get live feedback and fix problems once – for all the customers’ benefit.

The benefits of SaaS become even more apparent for applications specific to collaboration.  Because users can access the service via any Web browser, access is not dependent on using a specific personal computer or mobile device.  All users can access information anytime, from different locations and desktops.  And because the solutions are scalable and expandable, businesses can start collaborating right away, and then fine-tune processes and functionality as they learn what works and what doesn’t.

So, where is the hidden opportunity?  It is in the ability for your small and medium business to gain the power and functionality of collaborative technologies without the risk and costs normally associated with such solutions. 

By NextCorp, Ltd., Microsoft Dynamics GP Partner for Texas

Putting SaaS to Work in Your Business is a post from: ERP Software Blog

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