ETRM IN THE CLOUD
implementations typically range from 9 to 24 months. Contigo’s Piercy notes that “enTrader implementations typically range from 2-6 months, depending on the level of customisation involved”. Aspect is able to deploy their Lite Edition in a week, with the Standard Edition taking about 2 months. Aspect’s revenue breakdown would seem to confirm the relatively light implementation. 85% is from subscriptions. Only 15% is from services.
These independent data points are not amenable
to direct comparison because systems have very different functional footprints. Suffice it to say, cloud based implementations are delivered in a shorter time frame than local implementations.
What’s Hindering Adoption? Security remains a top worry but one that is abating. Aspect’s Savania notes “when we started out 12 years ago, ‘web based’ was a negative due to security concerns. But that changed a few years ago. Perhaps because of Amazon and Apple. Perhaps because we’ve all grown comfortable conducting so much of our lives online, including banking”. Contigo’s Piercy goes further, positively making the case that “hosted solutions offer better security”. Gallagher notes that OpenLink’s cloud
Security remains a top worry but one that is abating
offerings conform to the control requirements in SAS 70 for service organisations. “SSL and 2 factor authentication are just two of the ways your data is secured”. Brady is also ISO27001 and ISAE3402 certified. These certifications serve as a kind of Good Housekeeping Seal of Approval for cloud service providers. Local installations often fall short of these security standards.
Where Are The Customers? There is interest at all levels of the market.
But the action seems to be at the lower end. OpenLink which serves 12 of the largest commodity and energy companies, 11 central banks and 9 of the largest financial institutions, reports “interest in the cloud coming from all types and sizes of clients, but not much actual movement. At this point, they want to discuss strategy”. ETRM pioneer Dick Couron is responsible
for three systems which are delivered on a SaaS model. His take – “A robust ETRM cloud offering opens up the market to smaller companies currently using spreadsheets due to lower entry costs”. He likens it to the
shift in accounting software when
Peachtree and subsequently Quickbooks became available, replacing very expensive mainframe accounting systems. He sees the shift from client/server based ETRM to cloud based offering as “inevitable” due to the cost advantages and technology shifts. SoftSmiths’ Stappers says “SaaS customers
are typically new market entrants or folks migrating from spreadsheets”. Contigo’s
Piercy concurs. “The cloud
offering is most attractive to smaller players”. He speaks of an “untapped market
72 March 2013
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84