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Table of Contents
Study Background and Highlights...........................................................................................3 Cloud Adoption Status: Past, Present, and Future.....................................................................4 Types of Solutions .....................................................................................................5 Comparison to Saugatuck 2012 Survey .......................................................................6 Expected Benefits of Cloud Solutions......................................................................................7 Expressed Concerns about Cloud Solutions..............................................................................8 Integrating Cloud Solutions...................................................................................................10 Management............................................................................................................10 Maintenance............................................................................................................10 Benefits..................................................................................................................11 Current System Satisfaction Levels........................................................................................12 Expectations for Cloud Solutions...........................................................................................13
Appendix: About the Study..................................................................................................................14 Survey Questions......................................................................................................14 Demographics/Classifications....................................................................................17 About Cloud Accounting Institute..........................................................................................18 About Armanino..................................................................................................................18
2 | Cloud Solutions Best Practices: 2013 Benchmark Study | Cloud Accounting Institute
Background
In Q1 2013, the Cloud Accounting Institute (CAI) conducted a national survey of financial and accounting professionals concerning their current and intended future use of cloud solutions, commonly known as Software as a Service (SaaS) applications delivered through a public cloud. The survey is the basis for this benchmark study of cloud technology practices, outlooks, and trends based on the following topics: Cloud adoption status Key expected benefits of cloud solutions Key concerns about cloud solutions Expectations of cloud solutions Integration In addition, this report benchmarks some findings against the Cloud Accounting Best Practices 2012 Benchmark Study to identify emerging trends and established practices. To view a complete list of survey questions and survey respondent demographics, refer to the appendix.
Study Highlights
The rate of growth in cloud adoptions continues to accelerate, increasing over 43% in the last year to nearly 75%; the number of respondents indicating that they do not intend to use SaaS applications (18%) remains consistent with the 2012 study The most widely deployed solution areas currently are Accounting/Financial Management and front-end applications such as CRM and Web Portal Development Tools; both were selected by 52% of respondents Among those with plans to acquire SaaS solutions, 74% pointed to Accounting/ Financial Management and 50% indicated Budgeting/Forecasting Corporate Performance Management Solutions New this year are questions concerning integration challenges and how they are managed; responses indicate a substantial comfort level with using native cloud integration methods in house Comparative ratings of current versus SaaS functionality indicate that respondents believe that SaaS can deliver better ROI and increased efficiency; the demand for more efficient business processes is a major theme in this years survey
3 | Cloud Solutions Best Practices: 2013 Benchmark Study | Cloud Accounting Institute
2012
Do you currently use any cloud solutions, technologies, or Software as a Service (SaaS)?
Yes 52% No 48%
2013
Yes 75% No 25%
2012
Do you intend to use Cloud or Software as a Service for accounting solutions in the future?
Yes 83% No 17%
2013
Yes 82% No 18%
4 | Cloud Solutions Best Practices: 2013 Benchmark Study | Cloud Accounting Institute
What cloud solutions, technologies, or software do you use? What cloud solutions, technologies, or software do you use?
71% 58%
10% 7% 7%
0%
10%
20%
30%
40%
50%
60%
70%
80%
What cloud solutions, technologies, or software do you intend to use? What cloud solutions, technologies, or software do you intend to use?
74% 50%
Accounting/Financial Management
Budgeting/Forecasting/Corporate Performance Mgmt.
19%
3% Other
0%
10%
20%
30%
40%
50%
60%
70%
80%
5 | Cloud Solutions Best Practices: 2013 Benchmark Study | Cloud Accounting Institute
20% 2012
40% 2013
60% 2014
80%
100%
2015 or beyond
The current Saugatuck Strategic Planning Position states: Through 2016, 75% or more of NEW enterprise IT spend will be cloud-based or Hybrid.3 6 | Cloud Solutions Best Practices: 2013 Benchmark Study | Cloud Accounting Institute
What do you expect are the business benefits from adopting What are the business benefits of Cloud Solutions? Software as a Service (SaaS) solutions?
Simplify software management Reduce capital and/or operating cost Speed Implementation Leverage SaaS provider's technology Improve service levels Enable focus on core competencies
25% 19% 7%
Reduce risk
Increase Revenue
3% Other
0%
10%
20%
30%
40%
50%
60%
70%
7 | Cloud Solutions Best Practices: 2013 Benchmark Study | Cloud Accounting Institute
Security concerns Integration challenges with other applications Total cost concerns Application performance
59% 51%
41% 26%
We can't find the specific functionality we need Difficulty and risk of migration or installation
Complicated pricing models We're locked in financially with our current vendor
Other
0%
10%
20%
30%
40%
50%
60%
70%
8 | Cloud Solutions Best Practices: 2013 Benchmark Study | Cloud Accounting Institute
Findings on Concerns:
The top four responses (security concerns, integration challenges with other applications, total cost concerns, and application performance) all relate to what the SaaS vendor provides, while the bottom four relate to challenges the purchaser must manage internally Several other responses indicated concerns with trusting their data to a vendor whose long-term financial viability is not guaranteed Security, the second-highest concern (44%) in 2012, became the top concern for respondents in 2013 (59%) A pplication performance moved out of the top three concerns this year. Respondents are becoming more comfortable with the performance of cloud computing applications For some, their top concern was missing out on SaaS because of financial lock-in with their current vendor. This is the smallest group of responses for both 2012 and 2013. It partially explains the number (18%) that indicated that they dont intend to use SaaS in the future
9 | Cloud Solutions Best Practices: 2013 Benchmark Study | Cloud Accounting Institute
We manage in-house with Application Programming Interface (API) plug-ins We outsource integration to a third-party specialist We ask our cloud vendor to manage integration with new solutions Other
36%
34% 33%
16%
0%
10%
20%
30%
40%
Who maintains cloud software integration for your organization? Who maintains cloud software integration for your organization?
We ask our cloud vendor to manage integration with new solutions
We manage in house with Application Programming Interface (API) plug-ins
35%
31% 31%
11%
We manage in house, without APIs
4%
0%
10%
20%
30%
40%
10 | Cloud Solutions Best Practices: 2013 Benchmark Study | Cloud Accounting Institute
What are the of of tighter between cloud solutions? What aretop the benefits top benefits tighter integration integration between cloud solutions?
A "single version of the truth" for improved management decision-making Reduce duplicate data entry Real-time reporting
70%
63% 63%
4%
Other
0%
10%
20%
30%
40%
50%
60%
70%
80%
11 | Cloud Solutions Best Practices: 2013 Benchmark Study | Cloud Accounting Institute
6%
2% 2%
Publishing complete and relevant information to stakeholders 4% Optimizing business processes 5% Reducing process inefficiencies 4% Improving ROI 4% Reducing fraudulent transactions Managing performance in the context of business risk 1 (Terrible) 2 (Poor)
10%
3 (Average)
4 (Good)
5 (Excellent)
12 | Cloud Solutions Best Practices: 2013 Benchmark Study | Cloud Accounting Institute
12% 15% 25% 23% 20% 17% 24% 28% 35% 39%
50% 52% 40% 47% 42% 46% 41% 32% 37% 36%
38% 31% 35% 29% 38% 34% 32% 35% 25% 22%
Improving ROI 5%
2% 3%
3 (Average)
2%
2%
4 (Good)
5 (Excellent)
13 | Cloud Solutions Best Practices: 2013 Benchmark Study | Cloud Accounting Institute
14 | Cloud Solutions Best Practices: 2013 Benchmark Study | Cloud Accounting Institute
Appendix
About the Study
The Cloud Accounting Institute conducted the second annual benchmark study in Q1 2013. For purposes of comparison, the question set was modeled after the Saugatuck Technologies study, with some modifications. The survey was distributed to professionals in the finance and accounting industries through multiple lists and associations, including the Institute of Management Accountants (IMA), the University of Missouri Columbia School of Accounting, and several CFO lists. List of questions asked with answer choices below: 1. What is your job title? a. CEO b. CFO c. VP of Finance d. Controller e. Other 2. Do you currently use any cloud solutions, technologies, or Software as a Service (SaaS)? a. Yes b. No 3. If yes, what solutions? a. Accounting/Financial Management b. Budgeting/Forecasting/Corporate Performance Management c. Consolidation d. ERP e. Business Intelligence f. Front-end Applications such as CRM and Web Portal Development Tools g. Other 4. Do you intend to use Cloud or Software as a Service for accounting solutions in the future? a. Yes b. No 5. If yes, what solutions? a. Accounting/Financial Management b. Budgeting/Forecasting/Corporate Performance Management c. Consolidation d. ERP e. Business Intelligence f. Front-end Applications such as CRM and Web Portal Development Tools g. Other
15 | Cloud Solutions Best Practices: 2013 Benchmark Study | Cloud Accounting Institute
6. What do you expect are the business benefits from adopting Software as a Service (SaaS) solutions? a. Reduce capital and/or operating cost b. Simplify software management c. Improve service levels d. Speed implementation e. Enable focus on core competencies f. Convert fixed IT costs to variable costs g. Reduce risk h. Increase revenue i. Improve internal and external collaboration j. Access next-generation application functionality not available in current software k. Leverage SaaS providers leading-edge technology l. Other 7. What are your top concerns about cloud computing? a. Security concerns b. Integration challenges with other applications c. Total cost concerns (i.e., total cost of ownership) d. We cant find the specific functionality we need e. Difficulty and risk of migration or installation f. Application performance g. Complicated pricing models h. Were locked in financially with our current vendor i. Other 8. How efficient and effective is your current system at a. Providing financial information to decision makers b. Adapting to changing business or process requirements c. Recording transactions according to GAAP d. Maintaining an effective internal control structure and process e. Publishing complete and relevant information to stakeholders f. Optimizing business processes g. Reducing process inefficiencies h. Improving ROI i. Reducing fraudulent transactions j. Managing performance in the context of business risk 9. How efficient and effective do you expect a SaaS/cloud solution to be at a. Providing financial information to decision makers b. Adapting to changing business or process requirements c. Recording transactions according to GAAP d. Maintaining an effective internal control structure and process e. Publishing complete and relevant information to stakeholders f. Optimizing business processes g. Reducing process inefficiencies h. Improving ROI i. Reducing fraudulent transactions j. Managing performance in the context of business risk 16 | Cloud Solutions Best Practices: 2013 Benchmark Study | Cloud Accounting Institute
10. How do you currently manage integration of cloud software solutions? a. We manage in-house with Application Programming Interface (API) plug-ins b. We outsource integration to a third-party specialist c. We ask our cloud vendor to manage integration with new solutions d. Other 11. Who maintains cloud software integration for your organization to ensure it will upgrade? a. We manage in-house with Application Programming Interface (API) plug-ins b. We outsource integration to a third-party specialist c. We ask our cloud vendor to manage integration with new solutions d. Other 12. What are the top benefits of tighter integration between cloud solutions? a. Reduce duplicate data entry b. Real-time reporting c. A single version of the truth for improved management decision-making d. Other 13. How many employees does your company have? a. 1 10 b. 11 25 c. 26 100 d. 100 500 e. More than 500 14. What is your current accounting and financial management system? a. QuickBooks b. Microsoft Dynamics GP (Great Plains) c. Intacct 15. How many are active users of your accounting and financial management applications? a. 1 5 b. 6 10 c. 11 30 d. More than 30 16. Do you have users in remote locations? a. Yes b. No
17 | Cloud Solutions Best Practices: 2013 Benchmark Study | Cloud Accounting Institute
Demographics
In Q1 2013, the Cloud Accounting Institute conducted a national, online survey of finance
and accounting professionals
The survey drew 119 self-selected respondents who replied anonymously, compared to 63 for
the 2012 Benchmark Study
Most respondents are CFOs (23%) or Controllers (25%) Survey respondents represent a full range of company sizes: 26 100 employees (36%),
100 500 employees (21%), and more than 500 employees (16%)
Almost half of respondents (49%) represent companies with five or fewer active users of financial apps The majority of respondents (70%) support users in remote locations The majority of respondents (58%) are currently using QuickBooks and their accounting and
financial management system, followed by Microsoft Dynamics GP (26%), and Intacct (16%)
Job Title
How many are active users of your accounting and financial management applications?
1-5 (49%) 6-10 (17%) 11-30 (17%) More than 30 (17%)
What is your current accounting & financial management system? Accounting & Financial Management System
Quickbooks (27%) Microsoft Dynamics GP (11%) Intacct (7%) SAP (7%) Microsoft Dynamics SL (5%) Other Microsoft (5%) Other (38%)
1 2 3 4
http://www.forbes.com/sites/louiscolumbus/2013/02/19/gartner-predicts-infrastructure-services-will-accelerate-cloud-computing-growth/ Saugatuck Technologies, Saugatucks 2012 Global Cloud Business Survey: Data Report, Special Abridged Version (7.1), March 21, 2012 http://saugatucktechnology.com/blog/entry/1168ra-2013-year-of-transition.html http://www.ssae16.org/what-is-ssae-16/why-a-new-standard.html
18 | Cloud Solutions Best Practices: 2013 Benchmark Study | Cloud Accounting Institute
Lindy Antonelli,
www.CloudAccountingInstitute.org
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