How to Cut Costs in the Cloud

5 Spend Management Best Practices for 2010

A Coupa SofLware e8ook


leel free Lo republlsh excerpLs from Lhls whlLepaper, as lona as vou llnk back Lo hLLp://www.coupa.com
for aLLrlbuLlon. And lL's also okav Lo share Lhls reporL ln lLs enLlreLv wlLh anvone vou Lhlnk mlahL be
lnLeresLed. ln facL, we'd be dellahLed lf vou dld.
Coupa Software HOW TO CUT COSTS IN THE CLOUD 2

The Emerging Field of Cloud Spend Management,
and what it Means for e-Procurement
lL's fun Lo read vear-end Lechnoloav predlcLlons for Lhe comlna vear. lf vou belleve Lhe pundlLs, cloud compuLlna wlll be huae for Lhe
enLerprlse ln 2010. Conslder:
• Cloud compuLlna was named a Lop Lech Lrend for 2010 bv dozens of publlcaLlons, consulLanLs and analvsLs.
• CarLner predlcLs LhaL a flfLh of enLerprlses wlll have mlaraLed all Lhelr l1 Lo Lhe cloud bv 2012.
• Cnn / Monev ldenLlfled 'on-demand sofLware' as a Lop Lech Lrend for Lhe comlna decade, speclflcallv because "sofLware as a
servlce" (SaaS) ls aLLracLlve Lo Lhe ClC and ClC for lLs obvlous cosL-cuLLlna beneflLs. Movlna Lo cloud-based SaaS soluLlons
obvlaLes Lhe need Lo lnvesL ln masslve daLa cenLers, and Lhev can buv -- or cancel - Lhe sofLware servlce when Lhev add or
subLracL emplovees.
1here's aood reason for Lhe enLhuslasm. AL a mlnlmum, developlna new soluLlons ln Lhe cloud requlres verv llLLle caplLal, ensurlna a
sLeadv sLream of lnnovaLlon Lo Lhe markeL LhaL heaLs up compeLlLlon and breaLhes llfe lnLo sofLware caLeaorles ln dlre need of new
lnnovaLlon.
And Lhe markeL ls readv for lL. !usL conslder all Lhe sofLware LhaL ºslLs on Lhe shelf," and lL's easv Lo undersLand whv a backlash aaalnsL
enLerprlse sofLware has developed. LnLerprlse 8esource Þlannlna (L8Þ) svsLems, ln parLlcular, aeL hammered ln Lhe press:
"ln theory, our £kP system cou/d do whot we wonted it to do, but in proctico/ity it wou/d never hoppen, becouse the
cost of doino thot wou/d hove been ostronomico/."
"Like tectonic p/otes odrift on o seo of moomo, £kP instonces ond the businesses they serve ore bound to drift oport
over time or dromotico//y co//ide with eorthouoke-/ike conseouences."
ln Lhls e-book, we wlll ouLllne flve besL pracLlces for spend manaaemenL ln 2010 lnsplred bv lnnovaLlons ln Lhe cloud, and how Lhev wlll
help companles spend smarLer, and save more.



Coupa Software HOW TO CUT COSTS IN THE CLOUD 3

Best Practice 1: Build a foundation for success

1he success or fa||ure of your spend and sav|ngs |n|t|at|ves w||| |arge|y depend upon the purchas|ng processes and techno|ogy
p|atform you have support|ng them. A foundat|on bu||t on archa|c techno|og|es that are d|ff|cu|t to use, prov|de ||m|ted
|ns|ght and force you |nto |neff|c|ent workf|ows, on|y promotes wastefu| spend|ng and does noth|ng to e||m|nate |t. 1o
ensure success, organ|zat|ons need to bu||d a support|ng foundat|on that |s n|mb|e, f|ex|b|e and can eas||y ad[ust to necessary
sav|ngs measures as needed.

L||m|nate Manua| Þrocess neadaches & nandho|d|ng
CosLlv, Llme-consumlna Lxcel-based processes, characLerlzed bv a loL people spendlna a loL of Llme
pushlna paper, ls surprlslnalv sLlll Lhe norm for manv oraanlzaLlons. LllmlnaLe poor processes Lo
free up Llme for more sLraLealc acLlvlLles, llke analvzlna spend daLa, neaoLlaLlna beLLer prlclna
and developlna sLronaer suppller relaLlonshlps. uslna a cloud-based e-procuremenL soluLlon,
1he ConLalner SLore, for example, was able Lo creaLe auLomaLed onllne alerLs Lo noLlfv Lhe
approprlaLe people when acLlon ls needed, elLher because spendlna has crossed a
Lhreshold, or perhaps because spendlna ls Lracklna ahead of speclflc budaeLs.
unllke Lhe larae enLerprlse sofLware deplovmenLs cosLlna mllllons of dollars
LhaL characLerlzed Lhe lasL 20 vears, cloud-compuLlna offers a refreshlna
lower-cosL alLernaLlve LhaL ls ofLen much easler Lo use, and less resource-
lnLenslve. 1he resulL: a real opporLunlLv Lo plloL a proaram on a fullv
funcLlonlna svsLem wlLh modesL lnvesLmenL.
LsLabllsh a beachhead lnslde Lhe oraanlzaLlon Lo prove Lhe value before vou
move forward wlLh Lhe full lnlLlaLlve. CfLen Llmes, Lhe l1 oraanlzaLlon ls Lhe
ldeal place Lo bealn a pro[ecL llke Lhls. AL manv companles, Lhere ls slanlflcanL
opLlon value Lo cloud-based soluLlons. ln addlLlon Lo lmprovlna e-procuremenL pracLlces
wlLhln Lhe oraanlzaLlon, movlna Lo cloud-based alLernaLlves represenLs an lmmedlaLe savlnas
opporLunlLv Lo mosL l1 oraanlzaLlons. lLs mlnlmal upfronL expendlLures allow l1 Lo evaluaLe
Lhe opLlon prlor Lo exerclslna lL, a rarlLv ln enLerprlse sofLware. lf Lhe LesL ls successful and l1
aeLs behlnd Lhe pro[ecL, vou beneflL from Lhelr supporL ln exLendlna Lhe soluLlon Lo oLher
deparLmenLs. l1 beneflLs from lmmedlaLe cosL-savlnas opporLunlLles as lL dlsplaces slanlflcanL
Coupa Software HOW TO CUT COSTS IN THE CLOUD 4

supporL and malnLenance cosLs wlLh a subsLanLlallv lower subscrlpLlon cosL. 1hen sLraLealcallv move Lo lmplemenL e-ÞrocuremenL Lo
remalnlna deparLmenLs, sLarLlna wlLh Lhose deparLmenLs where spend ls hlah and volumes are low, or Lhose LhaL have unlque
requlremenLs.
Don't Get Dera||ed 8y Integrat|on Concerns
Aberdeen esLlmaLes LhaL mosL companles have barelv 20° of Lhelr lndlrecL spend under manaaemenL. ?ou cannoL lncrease LhaL
percenLaae wlLhouL Lhe acqulescence of vour users, and Lhev are unllkelv Lo provlde LhaL supporL unless vou can provlde Lhem wlLh a
compelllna reason Lo.
Movlna Lo Lhe cloud ls as much culLural as lL ls Lechnoloalcal. ln
Lhe cloud, sofLware ls easv Lo use. lf vour e-procuremenL soluLlon
ls easv Lo use, and beLLer for Lhe user Lhan everv oLher purchaslna
alLernaLlve (llke aolna around Lhe svsLem Lo purchase whaL vou
need dlrecLlv, and Lhen submlLLlna LhaL expense for
relmbursemenL), vou wlll be surprlsed bv how qulcklv Lhev adopL
and Lool and drlve spend under manaaemenL Lo new levels. ?ou
rlsk loslna LhaL aroundswell lf vou focus on lnLearaLlon Loo earlv ln
Lhe pro[ecL - prlmarllv because Lhe svsLems vou wlll wanL Lo
lnLearaLe are Lhemselves mav be anLlquaLed and characLerlzed bv
cusLomlzaLlons and workarounds. 8eLLer Lo see how Lhe soluLlon
affecLs user behavlor before mapplna Lhe new soluLlon Lo sub-
opLlmal processes. Cver Llme, vou mav deLermlne LhaL vour
exlsLlna recelpL, lnvolclna and maLchlna processes can be easllv
lmproved, and ln Lhe meanLlme, vou lose noLhlna bv uslna cloud-based e-procuremenL Lo complemenL vour exlsLlna lnvolclna and
pavmenL processes.



´we oow bove oll soppllets. occooots. ooJ lovolces flowloo
seomlesslv betweeo oot occoootloo ooJ e-ptocotemeot
svstems. 1bls loteototloo betweeo coopo ooJ Mlctosoft
uvoomlcs eosotes cboooes to soppllet ot occoootloo
lofotmotloo oo eltbet svstem ls svocbtoolzeJ ooJ tbe Joto
flow ls ootomotlc. 1bls fooctlooolltv bos occeletoteJ oot
obllltv to sbow o tetoto oo oot lovestmeot lo coopo.´
5teve Ierguson, CIC
Þrospect Lducat|on
Coupa Software HOW TO CUT COSTS IN THE CLOUD 5

Best Practice 2: Drive adoption through user experience

De||ver a purchas|ng exper|ence that beats the snot out of every shortcut peop|e take to avo|d bureaucracy and hass|e.
Make |t eas|er for emp|oyees to order what they need, make |t eas|er for managers to rev|ew and approve those requests,
and make |t eas|er for department heads to see the rea|-t|me |mpact of spend|ng on the|r respect|ve budgets.

Make It As Lasy As Goog|e
1he paLh of leasL reslsLance ls a well-worn paLh. And for aood reason. no emplovee - dlllaenL ln her role or oLherwlse - llkes Lo sub[ecL
herself Lo a requlslLlon process LhaL ls hard Lo undersLand, and a revlew and approval process LhaL could Lake weeks Lo navlaaLe.
Lspeclallv when Lhere ls an opLlon Lo ao onllne and order vlrLuallv anvLhlna vou could posslblv need ln [usL a few cllcks, and Lhen submlL
Lhe expense for relmbursemenL laLer.
8uL LhaL ls exacLlv whaL mosL companles do. 1hev mandaLe corporaLe purchaslna auldellnes, and Lhen force Lhelr emplovees Lo ao
Lhrouah a requlslLlon process LhaL ls maddenlna ln lLs complexlLv. So maddenlna, ln facL, LhaL manv emplovees suspecL Lhev were
deslaned as Lools of ºbuslness prevenLlon." 1hev are forced Lo buv from ºpreferred" suppllers LhaL don'L carrv whaL Lhev need, or carrv
Lhe lLem aL a ºneaoLlaLed" prlce LhaL ls 13° more expenslve Lhan whaL Lhev found Lhrouah a slmple onllne search. 8uv-ln, as vou mlahL
suspecL, ls lacklna.
1he aood news ls LhaL Lhe newer cloud-based buslness appllcaLlons are bullL uslna Lhe same Lechnoloales and consumer lnnovaLlons LhaL
have made Amazon such a compelllna shopplna experlence. lor e-procuremenL, LhaL means one Cooale-llke lnLerface LhaL prompLs Lhe
user, ºWhaL do vou need?"


Coupa Software HOW TO CUT COSTS IN THE CLOUD 6

no searchlna for purchaslna pollcles on Lhe emplovee porLal flrsL, or Lrvlna Lo flaure ouL whlch caLaloaues Lo peruse. 1he svsLem does
LhaL for vou, and reLurns Lo Lhe user, ln one seL of search resulLs, all relevanL corporaLe buvlna pollcles, caLaloaue lLems from preferred
suppllers, oLher relevanL punchouL suppllers, and even maLches for LhaL lLem or servlce on Lhe web. A Lrue one-sLop shopplna experlence
for an emplovee LhaL ls much easler, and Lhus preferred, Lo Lhe undeslrable alLernaLlve - maverlck spendlna LhaL ls hard Lo prevenL, and ls
ofLen lnvlslble unLll afLer Lhe perlod ends and Lhe accounLlna Leam closes Lhe books.
Go Cne 5tep Iurther w|th C|oud 5pend Management
WlLh newer cloud-based soluLlons llke Coupa, Lhe llne beLween a requlslLlon and expense relmbursemenL blur. lrom one lnLerface, on a
common plaLform sharlna a slnale approval workflow enalne, emplovees can submlL a requlslLlon or flle an expense reporL. ln facL, wlLh
Coupa, emplovees can flnd a areaL deal onllne, add LhaL lLem Lo a requlslLlon, have Lhe requlslLlon approved, and order Lhe lLem dlrecLlv,
whlch Lhen auLomaLlcallv populaLes an expense reporL as a pre-approved llne lLem. lrom an emplovee's perspecLlve, a revoluLlonarv
lmprovemenL ln Lhe user experlence LhaL Lrulv expedlLes Lhe purchaslna process wlLhouL sacrlflclna Lhe vlslblllLv or conLrol manaaemenL
needs Lo effecLlvelv conLrol spendlna.
8uL don'L sLop wlLh end-user requesLers. 1o drlve Lhe adopLlon
vou need Lo Lrulv aeL spend under manaaemenL, vou need Lo
address each consLlLuenL's needs. 1he manaaer on Lhe road
who doesn'L have Lhe Llme Lo loa lnLo Lhe svsLem - he should be
able Lo revlew and approve requlslLlons vla emall or moblle
devlce. 1he deparLmenL heads and execuLlves ulLlmaLelv
accounLable for buslness spendlna need Lo know when spendlna
ls Lrendlna ahead of forecasLs, or when budaeLs are belna
consumed Loo rapldlv. uon'L make Lhem check Lhe svsLem. SeL
Lhresholds and schedule proacLlve alerLs Lo prompL Lhelr acLlon.
Spend manaaemenL ls more Lhan a dollars and cenLs calculaLlon. lL's a culLural shlfL. lL's abouL aeLLlna Lhe whole oraanlzaLlon allaned
behlnd Lhe companv's cosL savlnas lnlLlaLlves. lL's abouL encouraalna smarLer spendlna pracLlces. Þeople need a common plaLform from
whlch Lo operaLe. !usL make lL easler for Lhem Lo parLlclpaLe.

´lt´s so mocb eoslet tboo wbot we wete Joloo befote.
wolkloo otoooJ wltb tbe teoolsltloo ooJ cbosloo Jowo
opptovols. Mooooets love tbe ooe-cllck ptocess ooJ tbot
tbev coo opptove sometbloo lo secooJs tbtooob emoll.´
kate V|ncent, D|rector of Þrocurement
Grand Canyon Un|vers|ty
Coupa Software HOW TO CUT COSTS IN THE CLOUD 7

Best Practice 3: Crowd source savings

5av|ng money |s not the respons|b|||ty of the few: |t shou|d be a pr|or|ty for every emp|oyee |n the organ|zat|on. When
processes and systems are put |n p|ace that force emp|oyees to buy on|y from certa|n supp||ers or nav|gate bureaucrat|c
hurd|es to get the th|ngs they need to do the|r [ob, |t makes |t |mposs|b|e for emp|oyees to contr|bute to and part|c|pate |n
company sav|ngs p|ans. 1o keep everyone comm|tted and contr|but|ng, emp|oyees need to be empowered to eas||y take
advantage of the best dea|s ava||ab|e wh||e work|ng w|th|n the appropr|ate rev|ew and approva| processes.

Don't I|ght 1he 1|des of Change
lL's nalve Lo Lhlnk a few lndlvlduals ln Lhe procuremenL deparLmenL can slnale-handedlv neaoLlaLe conLracLs LhaL wlll alwavs ensure Lhe
buslness aeLs Lhe besL prlce. WlLh a few excepLlons, buslness and lnformaLlon moves Loo fasL for LhaL Lo be reallsLlc. 1he beLLer sLraLeav ls
Lo relv on Lhe wlsdom of Lhe crowd Lo source Lhe besL deals and drlve savlnas for Lhe buslness.
As lnformaLlon prollferaLes over Lhe web, and more and more
markeLs become lncreaslnalv LransparenL, prlclna has become
more sclenLlflc. 1hlnk alrllne seaLs. uon'L llke Lhe prlce of vour
alsle seaL? !usL walL Len mlnuLes and check aaaln, Lhe prlce mav
verv well be dlfferenL Lhls Llme around.
Lmplovees have alwavs looked upon Lhe purchaslna deparLmenL
and preferred suppller aareemenLs wlLh susplclon. 1hev know,
especlallv now, LhaL Lhev can ofLen beLLer conLracL prlces wlLh a
baslc amounL of research onllne. LeL's face lL - Lhe lnformaLlon ls
ouL Lhere. And Lhere's no wav Lo sLop lL. Spend manaaemenL
lnlLlaLlves bullL around a 'need Lo know' mlndseL LhaL conLrols Lhe
flow of lnformaLlon are doomed Lo fall. 1here's [usL no wav hold
back LhaL wave. So don'L.
k|de 1he Wave Instead!
A procuremenL oraanlzaLlon, even wlLh decades of collecLlve experlence, cannoL posslblv be experL ln everv caLeaorv of spend, and qulLe
franklv, even lf lL were, how much lncenLlve ls ln place for Lhe procuremenL manaaer Lo ao ouL of hls or her wav Lo flnd Lhe besL prlce on

´£vetvboJv sbops oolloe - llbtotloos ote oo Jlffeteot. 1bev
ooJetstooJ tbe cooveoleoce ooJ tbe Jellvetv tlme
lmptovemeots. 5o tbete cettololv bos beeo o oteot Jeol of
efflcleocv fot tbe elNetwotk osloo coopo to focllltote tbese
teooests.´
Mary McIntyre
e|Networks
Coupa Software HOW TO CUT COSTS IN THE CLOUD 8

everv ad-hoc purchase? no, leL Lhe procuremenL oraanlzaLlon focus on Lhe bla lnlLlaLlves, and empower vour emplovees Lo aeL whaL Lhev
need, qulcklv and easllv (lL's aoL Lo be easler Lhan Lhe 'expense lL and foraeL lL alLernaLlve' LhaL removes all conLrol and vlslblllLv from Lhe
purchaslna process). 1rusL Lhe svsLem vou puL ln place Lo conLrol Lhe purchaslna process and ensure Lhe approprlaLe approvals, buL
oLherwlse leL Lhe crowd have aL lL. uon'L be afrald!
new cloud spend manaaemenL soluLlons llke Coupa ao
bevond Lhe resLrlcLed lnformaLlon mlndseL, and lnsLead
leveraae Lools LhaL allow emplovees Lo ºdlscover and share"
onllne monev-savlna purchaslna opporLunlLles. Lmplovees
can scour Lhe web as parL of Lhelr requlslLlon process, and
verv ofLen flnd amazlna deals on lLems Lhev need - from
CversLock.com, or L8av, or even CralasllsL. 1hev share LhaL
lnformaLlon wlLh oLhers Lhrouah consumer-llke web 2.0
convenLlons, and collecLlvelv, evervone ln Lhe oraanlzaLlon
works LoaeLher Lo crowd source unLapped savlnas LhaL
oLherwlse would have aone unreallzed.
So don'L llmlL vour people bv resLrlcLlna lnformaLlon flow or
arLlflclallv conLrolllna Lhe opLlons avallable Lo Lhem. Lmpower
vour people Lo use whaL Lhev know Lo save Lhe companv monev. 1hlnk of Lhe psvcholoalcal lmpacL and beneflL of a arassrooLs efforL
lnslde Lhe companv - everv emplovee has an opporLunlLv Lo save Lhe companv monev wlLh everv requlslLlon Lhev submlL. Lven lf lL's [usL
pennles aL a Llme, lL sLlll adds up.


Coupa Software HOW TO CUT COSTS IN THE CLOUD 9

Best Practice 4: Skip the surveys, and benchmark against real
transactional market data

In genera|, bus|ness performance |s about beat|ng your ob[ect|ves, trend|ng |n the r|ght d|rect|on and do|ng |t better than
the compet|t|on. W|thout rea| data, |t can be very d|ff|cu|t to measure your performance, part|cu|ar|y re|at|ve to others |n
your |ndustry, or perhaps even re|at|ve to another d|v|s|on w|th|n your organ|zat|on.

8enchmarks 8eyond 5e|f-keported 5urveys
WasLe happens evervwhere, from Lhe speclflc lLems purchased and Lhe prlces pald Lo Lhe efflclencv of Lhe processes used Lo buv and
fulflll orders. 1here ls ample room Lo lmprove and opporLunlLles Lo maxlmlze savlnas. 1o perform aL Lhelr besL, oraanlzaLlons musL
measure Lhelr spend performance, noL onlv aaalnsL Lhemselves, buL aaalnsL Lhe markeL Lo deLermlne lf Lhev are ln facL performlna aL Lhe
hlahesL levels posslble or lf furLher aLLenLlon ls needed.
usuallv, Lhls ls done bv esLlmaLlna savlnas based on a pro[ecLed
volume of spend per neaoLlaLed conLracL. ln oLher words, a
preferred suppller conLracL mav offer a speclflc dlscounL ln
exchanae for a auaranLee of a cerLaln amounL of spend. ÞuL Lhe
Lwo LoaeLher, and lL's easv Lo calculaLe savlnas. 1he problem,
Lhouah, ls ensurlna LhaL Lhe acLual LransacLlons map Lo Lhe
pro[ecLed savlnas, and LhaL quallfled purchases don'L occur off-
conLracL.
1o daLe, benchmarklna for Lhe lndusLrv, boLh ln Lerms of
commodlLv prlclna and Lhe efflclencv of Lhe procure-Lo-pav
process, has been based enLlrelv on comparlson Lo survev daLa
collecLed bv consulLanLs and analvsL flrms. nelLher represenLs a Lrue represenLaLlon of companles' procure-Lo-pav LransacLlonal daLa.




´1bls ls tbe Jltectloo we wooteJ to oo. so we oet bettet
coottol ooJ see wbete oot speoJloo ls comloo ftom. lt wos
olwovs scotteteJ oboot wlllv-olllv fot o looo tlme. ooJ oow
we coo keep o bettet ttock of wbete oot potcboses ote
ooloo.´
M|chae| I|ood, V|ce Þres|dent of Cperat|ons
Woodruff Arts Center
Coupa Software HOW TO CUT COSTS IN THE CLOUD 10

An Accurate, kea|-1|me V|ew of 5pend Þerformance
LnLer cloud compuLlna and Lhe lncredlble power of Lhe neLwork effecL. Cloud compuLlna appllcaLlons wlLh a Lrue mulLl-LenanL
archlLecLure offer an lnherenL advanLaae over premlse-based soluLlons, and even Lhelr slnale-LenanL on-demand (hosLed) alLernaLlves,
because Lhev enable Lhe aaareaaLlon of daLa across Lhe neLwork or plaLform. lor Coupa, LhaL means aaareaaLlna Lhe bllllons of dollars ln
spend Lhrouah lLs plaLform lnLo LransacLlonal benchmarks for more Lhan 30 kev performance lndlcaLors. Companles can opL-ln Lo Lhe
proaram Lo measure Lhelr performance, boLh aaalnsL prlor perlods' performance, and aaalnsL Lhe markeL benchmarks, provldlna a real-
Llme reporL card and Lrue vlslblllLv lnLo Lhe effecLlveness of Lhe companv's savlnas proarams. 8ased on acLual LransacLlonal daLa Lhrouah
Lhe svsLem, companles can use Lhe benchmarks Lo deLermlne Lhelr performance relaLlve Lo Lhe broader markeL on meLrlcs lncludlna:
• savlnas as a percenLaae of spend
• averaae requlslLlon approval Llme
• percenLaae of requlslLlons re[ecLed
• percenLaae of purchase orders revlsed
• percenLaae of non-maLched lnvolces

Conslder Lhe poLenLlal ramlflcaLlons:
• lf vou learned LhaL, on averaae, 30° of spendlna requesLs are
re[ecLed, and vour companv ls onlv re[ecLlna 2° of requesLs,
wouldn'L vou wanL Lo conslder lmplemenLlna sLrlcLer spendlna
approval pollcles, now LhaL vou have real daLa Lo [usLlfv Lhls
chanae?
• WhaL lf vou learned LhaL, on averaae, Lurnaround Llme from
requlslLlon Lo approval Look Lwo hours, whlle aL vour companv
Lhe averaae ls Lhree davs? Wouldn'L vou conslder slmpllfvlna
Lhe workflow and approval rouLlna process aL vour companv so
LhaL emplovees can aeL Lhe aoods and servlces Lhev need Lo do
Lhelr [obs fasLer? Pow much admlnlsLraLlve burden and
expense would LhaL ellmlnaLe?
Coupa Software HOW TO CUT COSTS IN THE CLOUD 11

Best Practice 5: Take advantage of what SaaS has to offer

Cne of the b|ggest contr|butors to wastefu| spend are un|nsta||ed or fa||ed software |mp|ementat|ons. W|th pr|ce tags
upwards of s|x-f|gures, these so|ut|ons often fa|| to de||ver on the b|g prom|ses they make and are cost|y, |abor-|ntens|ve
and take months to |mp|ement. As an a|ternat|ve, 5aa5 so|ut|ons de||ver you the same robust, feature-r|ch so|ut|ons |n a
fract|on of the t|me, at a fract|on of the cost and w|th a fract|on of the resources requ|red to manage the app||cat|on.

Cons|der 1ota| Cost of Cwnersh|p & 1|me to Va|ue
lL's no secreL LhaL wlLhln mosL companles, l1 resources are boLh scarce and overburdened. lL ls noL uncommon for l1 deparLmenLs Lo
spend 70° Lo 80° or more of Lhelr budaeLs [usL Lrvlna Lo keep exlsLlna svsLems up and runnlna.

8ecause mosL companles' l1 resources
are so burdened wlLh LacLlcal responslblllLles, llLLle Llme ls
avallable for more sLraLealc efforLs.
ln Lhls envlronmenL, even aL companles wlLh well-funded, hlah-
performlna l1 oraanlzaLlons, lL's verv common for oraanlzaLlons
Lo overesLlmaLe l1 resource avallablllLv, underesLlmaLe Lhe Llme
requlred Lo acLuallv aeL a new pro[ecL sLaffed and underwav,
and underesLlmaLe Lhe Llme and monev requlred Lo compleLe a
pro[ecL.
1odav, whlle on-demand soluLlons conLlnue Lo aaln momenLum
ln Lhe markeLplace, some companles sLlll make Lhe mlsLake of
qulcklv dlsmlsslna Lhese offerlnas or falllna Lo even conslder Lhls
opLlon. SomeLlmes Lhls ls due Lo ouLdaLed l1 pollcles, quesLlons abouL Lhe poLenLlal savlnas assoclaLed wlLh on-demand offerlnas, or
concerns abouL l1 [ob securlLv.

´Coloo wltb coopo wos oo eosv Jeclsloo. 1bev moJe lt
eosv to lmplemeot. ooJ lt JlJo´t cost me o lot of mooev ooJ
l llkeJ oll tbose tbloos. 5o evetvtbloo we bov. we bov
tbtooob coopo.´
Ioe Gerard|, V|ce Þres|dent of I1
Amer|can 8apt|st nomes of the West

Coupa Software HOW TO CUT COSTS IN THE CLOUD 12

Iocus on 5trateg|c 1echno|ogy vs. 1act|ca| Lfforts
1he beneflLs of cloud compuLlna are Louah Lo lanore. Cn averaae, SaaS deplovmenLs are 30° Lo 90° fasLer Lhan premlse-based
alLernaLlves, wlLh a LoLal cosL of ownershlp flve Lo Len Llmes less expenslve Lhan lnsLalled sofLware. Companles LhaL choose cloud-based
soluLlons reap Lhe followlna beneflLs:
• Lower upfronL cosLs - 1here ls no bla upfronL appllcaLlon sofLware lnvesLmenL, and no need Lo buv and lnsLall hardware,
mlddleware, and daLabases.
• Lower onaolna malnLenance cosLs - 1here ls no lnfrasLrucLure Lo malnLaln and scale, and less downLlme.
• lasLer Llme-Lo-value - Companles are aenerallv up and runnlna ln a fracLlon of Lhe Llme of on-slLe deplovmenLs.
• lnsLanL, auLomaLlc updaLes - Companles alwavs have lmmedlaLe access Lo Lhe laLesL producL enhancemenLs.

Clven Lhese beneflLs, and Lhe lack of l1 bandwldLh aL mosL companles Lo focus on more sLraLealc l1 lssues, companles should sLronalv
conslder cloud-compuLlna offerlnas.
Coupa Software HOW TO CUT COSTS IN THE CLOUD 13

Summary

lanore cloud compuLlna aL vour own rlsk. 1he chanae won'L happen overnlahL, buL lL wlll happen. As a caLeaorv, cloud-based soluLlons
are easler Lo use, less cosLlv, and less rlskv Lhan complex, resource-lnLenslve premlse based soluLlons, or Lhelr slnale-LenanL on-demand,
hosLed offshooLs. Spend ManaaemenL ls a caLeaorv LhaL has lacked lnnovaLlon, and ls parLlcularlv sulLable for cloud-based soluLlons llke
Coupa. Lasv-Lo-use cloud appllcaLlons accesslble Lhrouah a browser are abouL Lhe onlv reasonable wav Lo drlve Lhe adopLlon vou need
Lo Lrulv aeL all non-pavroll spend under manaaemenL, especlallv when Lhe vasL ma[orlLv of users are who need Lo access
and use Lhe svsLem on an lnfrequenL basls.
So do lL! 8u||d a foundat|on for success. Cloud-based soluLlons are less resource-lnLenslve and cosL nearlv noLhlna Lo aeL sLarLed, so use
LhaL Lo vour advanLaae wlLh an lncremenLal approach Lo vour spend manaaemenL lnlLlaLlve. ÞlloL Lhe proaram, and deLermlne Lhe value
of Lhe cloud opLlon. Lven lf vou elecL noL Lo ao forward, knowlna Lhe opLlon value of movlna Lo Lhe cloud wlll alve vou beLLer leveraae
wlLh vour exlsLlna Lechnoloav vendors, and poslLlon vou well for chanae ln Lhe fuLure.
locus on Lhe rlahL Lhlnas flrsL. 1he laraesL challenae faclna spend manaaemenL lnlLlaLlve ls emplovee buv-ln and adopLlon, wlLhouL
whlch vou cannoL arow Lhe amounL of spend under manaaemenL. So sLarL aL Lhe polnL of demand, and dr|ve adopt|on through a user
exper|ence LhaL ls boLh easler Lhan everv alLernaLlve and speclflc Lo each consLlLuenL, be he a requesLer, an approvlna manaaer, a
deparLmenL head or oLherwlse.
now LhaL vou have buv-ln from vour user base, harness Lhe collecLlve knowledae of vour emplovee Lo crowd-source greater sav|ngs,
parLlcularlv on Lhose ad hoc purchases for whlch no conLracLs exlsL, and whlch are lndlvlduallv Loo small Lo warranL Lhe aLLenLlon of vour
procuremenL oraanlzaLlon.
uon'L sLop selllna. A pennv saved ls a pennv earned LhaL aoes dlrecL Lo Lhe boLLom llne. 8efore cloud spend manaaemenL soluLlons llke
Coupa came onLo Lhe scene, lL was dlfflculL Lo prove Lhe flnanclal lmpacL of vour savlnas proarams. Cn one hand, aeLLlna Lo Lhe
LransacLlonal daLa LhaL could prove savlnas requlres L1L processes Lo mlne Lhe daLa ln a 8l appllcaLlon. And even armed wlLh LhaL daLa,
lL ls compleLelv lnwardlv focused and alves vou no sense of how vou perform relaLlve Lo compeLlLors or Lhe laraer markeL. So sk|p the
surveys, and benchmark aga|nst rea| transact|ona| market data. Clve vour manaaers real-Llme lnslahLs and lnLelllaence so Lhev can
make lnformed declslons on spendlna before lL's Loo laLe.
And flnallv, cash |n on cost sav|ngs |n the c|oud. l don'L mean calculaLlna an 8Cl and 1CC model Lo [usLlfv vour purchase (Lhouah Lhese
are lmporLanL, Loo). Lxerclse Lhe opLlon value of cloud spend manaaemenL Lo reallze lmmedlaLe savlnas on Lhe supporL, malnLenance
and uparade fees vou would oLherwlse have Lo pav Lo vour exlsLlna vendors. Conslder how happv Lhe ClC wlll be Lo ellmlnaLe Lhose
cosLs.
Coupa Software HOW TO CUT COSTS IN THE CLOUD 14

About Coupa Software

Coupa ls Lhe leadlna provlder of cloud spend manaaemenL soluLlons LhaL conLrol and sLreamllne purchaslna and expense manaaemenL
for oraanlzaLlons bevond Lhe lorLune 300. Coupa e-ÞrocuremenL dellvers an easv Lo use, fasL Lo deplov and affordable soluLlon for
requlslLlonlna, purchase orders, 8lCs, lnvenLorv and lnvolclna, wlLh no hardware Lo buv or sofLware Lo llcense. WlLh deep domaln
knowledae ln e-procuremenL, a besL-ln-class sofLware-as-a-servlce plaLform, a neLwork of Lhousands of suppllers, and a fasL-arowlna
communlLv of cusLomers, Coupa enables smarLer spendlna pracLlces LhaL allow companles Lo save monev qulcklv. lor more lnformaLlon
please vlslL, hLLp://www.coupa.com or call +1.630.931.3200.

1wo Ways 1o Learn More

Sign up to vote on this title
UsefulNot useful