Treasury in the Cloud Bob Stark – Vice President, Strategy September 17, 2014.

Treasury in the Cloud

Bob Stark – Vice President, StrategySeptember 17, 2014

2© 2014 Kyriba Corporation. All rights reserved. PROPRIETARY & CONFIDENTIAL.

Topics of Discussion

• What is cloud• What isn’t cloud• Why do we care (in treasury)?• Cloud checklist – what do I really need?• How to impress my IT team


The cloud - definition

Source: National Institute of Standards and Technology (NIST)


On-premise vs. ASP vs. SaaS

SaaSVendor

Company 1 Company 2 Company 3

ASP

Vendor Hardware

Company 1 Company 2 Company 3

Vendor

On-premiseCompany


How SaaS and ASP differ

Source: ThinkStrategies Inc.

Scalability and efficiency are why most organizations invest in technology in the first place

ASP is not scalable or efficient:

Why do we care?


Source: Forrester “The Changing Cloud Agenda”

Benefits delivered by cloud


Reduced Cost

Business Continuity

Reliability

• Pay for what you need• No internal hardware or IT costs• No upgrade costs (external or internal)

• Full redundancy: no single point of failure• Higher availability: across all time zones• Improved RTO, RPO for minimized disruption

• Always on current release• Newest software tools; no obsolescence• Economies of scale -> vendor viability

Implementation and Support

• Quicker implementation; no need for IT• Ease of support; every client on same version• No individual configuration/support issues

Security• Relocates data away from internal IT environment• Multiple levels of physical/virtual security• Externally audited systems and controls

Benefits delivered by the cloud


• Key component of business continuity is ‘disaster recovery’

• Effective business continuity means:Synchronized data centers with dedicated linkFull redundancy and disaster recoverySLA of 99.9% uptimeRTO <4.0hrsRPO <30 min

Benefits – Business Continuity


1) Application Security

Weak passwords are the easiest entry point to hack a software solution and access data

Cloud technology offers strong password controls:– Password timeouts, resets, history, alphanumeric requirements– Virtual Keypad– Two-factor authentication (SMS or Yubikey)

These controls may eliminate fraud and are stronger than other solutions: ASP or installed

Benefits – Security


2) Data Security

Treasury data is safer when hosted externally than within a company’s internal servers (according to IT)– 80% of treasury professionals have violated internal procedures

by being in the server room where internal treasury data is hosted– 90% of data fraud is internal or socially engineered – Between external hosting & strong password controls, treasury

data is safer



2) Data Security

Cloud technologies offer numerous safeguards:– Encryption of all data in transit between systems, especially

externally– Hosting within SOC1 certified data centers that feature 24/7

security, biometric access– Separation of duties & other policy driven protections to

restrict access to hosting infrastructure and client data–Numerous firewalls to protect externally and between tiers– Scheduled penetration testing by industry leading providers



2) Data Security

Treasury data is safer when hosted externally than within a company’s internal servers (according to IT)– 80% of treasury professionals have violated internal procedures

by being in the server room where internal treasury data is hosted– 90% of data fraud is internal or socially engineered – Between external hosting & strong password controls, treasury

data is safer


Treasury in the CloudChecklist


What you expect of a treasury solution

New features and capabilities several times per year

Bank Connectivity

Integration

Market Data

Func

tiona

lity

Upgrades

To/From Internal Systems (e.g. ERP)

and External Systems (e.g.

Trading Portals)

Market rates and curves(maybe ratings or KPIs)

Multiple BanksMultiple ProtocolsMultiple Formats

Cash, Treasury, Payments, Working Capital, and Risk Management


UpgradesFrequent (3 to 4 times per year)100% managed by vendor; no user or IT involvementNo additional costs

SupportProactive monitoringAll clients on same release – vendor supporting one version

Mobility Functions on any deviceNo additional ‘accompanying’ software

CostSoftware subscriptionMenu of modules; can add/subtract easilyQuick, cheap, easy implementations

What you expect of a treasury SaaS solution


Security Two-factor authenticationPenetration testing reports, provided to youData encryptionPhysical safeguards to prevent data and hardware access

Audit SOC 1 audit report for application, provided to youSOC 1 audit report for data center, provided to you SOC 2 reporting, also provided to you

Business Continuity Multiple Data CentersRedundant solution – not just data backupRTO and RPO to meet Treasury SLA’s (e.g. 30 min of data loss or

a few hours of downtime only)High uptime (e.g. 99.9%) with penalties for non-compliance

What you expect of a treasury SaaS solution

How to impress your IT Team


How to impress your IT team

Top 5 Icebreakers when chatting up your local IT resource:

1) Is this SaaS, PaaS or Infrastructure as a Service?

2) What kind of cloud deployment is this?

3) Steve Jobs, a priest, and a Zebra walk into a bar…

4) What is the RTO and RPO? You know we can’t live with an RPO of more than 30 minutes…”

5) “That’s not cloud! That’s only hosted software.”


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Thank you

Treasury in the Cloud Bob Stark – Vice President, Strategy September 17, 2014.

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