CLOUD VS. ON-PREMISE DISTRIBUTION SOFTWARE

1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CLOUD VS. ON-PREMISE DISTRIBUTION SOFTWARE CLOUD VS. ON-PREMISE SOFTWARE: ARE YOU STILL ON THE FENCE? ? ? . . . . . . . . . . . . . . . . . . . . . . ARE YOU STILL DEBATING? E-GUIDE

2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . INTRODUCTION CLOUD VS. ON-PREMISE SOFTWARE: ARE YOU STILL DEBATING? When Cloud-based software first emerged, the benefits were sometimes debated. On the surface, the Cloud seemed like a much more sensible approach to using software, and a way to generate cost-savings from economies of scale. But was it secure? Would it indeed lead to increased productivity because of its ease of access? And most importantly, did the benefits of this disruptive technology outweigh the risks of jumping feet-first into this new trend? . . . . . . . . . . . . . . . . . . . . . . In this document, we’ll try to answer distributors’ questions about the benefits of Cloud vs. On-Premise software. www.adssolutions.com E-GUIDE

3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CLOUD DEPLOYMENT IS PAST THE TIPPING POINT CLOUD DEPLOYMENT IS NO LONGER A CHOICE: IT IS THE STANDARD CLOUD VS. ON-PREMISE SOFTWARE: ARE YOU STILL DEBATING? Cloud deployment is no longer a questionable delivery model for business software, it is the accepted standard. According to industry analysts, IDC : • By 2020, IT infrastructure spending on Cloud environments will exceed spending on non-Cloud environments • 5 year CAGR of Cloud spending will be 12%, while non- Cloud will decline by 3% over the same period REACT TO TRENDS GET REAL-TIME DATA FROM A SINGLE DATA SOURCE In 2019, more than 90% of US businesses are using Cloud infrastructure to some degree – Shouldn’t you be one of these? . . . . . . . . . . . . . . . . . . . . . . www.adssolutions.com E-GUIDE

4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . PRICE STRATEGICALLY THE FIVE MAIN ADVANTAGES OF CLOUD-BASED SOFTWARE CLOUD VS. ON-PREMISE SOFTWARE: ARE YOU STILL DEBATING? If you are still using an on-premise legacy ERP system, these are the five most compelling reasons you should plan your move to the Cloud: Ease of use leads to better productivity  IT simplicity reduces cost and headaches  SaaS pricing frees up investment capital  Cloud is more cost-effective on a TCO (Total Cost of Ownership) basis  Cloud is more secure . . . . . . . . . . . . . . . . . . . . . .  www.adssolutions.com E-GUIDE

5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . YOU’LL SEE GAINS IN PRODUCTIVITY BECAUSE IT’S EASIER TO USE Cloud distribution software lets you access your software from anywhere, anytime, using any device, with no need for any type of software to be installed on the access device. More convenient and “always ready” access by users drives productivity for mobile and remote workers. Employees can complete tasks even after close-of-business. Many do just that, and business owners and managers benefit from the increased productivity. CLOUD VS. ON-PREMISE SOFTWARE: ARE YOU STILL DEBATING? In addition to better productivity, workers tend to be happier with Cloud-based software. Compared to legacy systems, Cloud solutions are easier to learn and more intuitive. That happiness reduces user frustration and boosts job satisfaction, which, in turn, makes your staff more productive. Cloud software can also help you attract and retain talent. Millennials who are now entering the workforce have never used anything other than Cloud software their whole lives …. . . . . . . . . . . . . . . . . . . . . . . www.adssolutions.com E-GUIDE

6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . IT SIMPLICITY REDUCES BOTH COST AND HEADACHES CLOUD VS. ON-PREMISE SOFTWARE: ARE YOU STILL DEBATING? Cloud-based software systems require far less investment in IT support. Period. With Cloud solutions, all the complex tasks associated with network configuration, compatibility, and both hardware and software management are handled for you. You won’t need to schedule and manage your own or outsourced IT specialists. You won’t have the cost or delays of having your IT specialist needing to open a support ticket and work with specific hardware or software vendors to solve the problem. And you won’t have to deal with the hardware vendor blaming a specific application vendor and vice versa. All this will reduce the burden on you, freeing you up to grow your business. You will simply access your distribution software as a website address URL, and your software provider takes care of the rest. . . . . . . . . . . . . . . . . . . . . . . www.adssolutions.com E-GUIDE

7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . IT SIMPLICITY REDUCES BOTH COST AND HEADACHES (cont’d) With Cloud distribution software: • You’ll always have the latest hardware running the most current operating system and compatible distribution software • You won’t have to worry about hardware upgrades, operating system upgrades, application software updates or data backups • You will no longer need to use complex VPNs to tie together your multiple locations and printers at each location • And, you will no longer have the headache of the ever-increasing complexity of maintaining all the components of your on-premise network. CLOUD VS. ON-PREMISE SOFTWARE: ARE YOU STILL DEBATING? All this translates into: • Significantly lower IT costs • Less hassle in managing outsourced IT consultants • Reduced downtime for your network • And more time for you to focus on increasing profits and growing your business. . . . . . . . . . . . . . . . . . . . . . . www.adssolutions.com E-GUIDE

8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FINANCIAL PROFILE FREES UP INVESTMENT CAPITAL Cloud solutions allow you to pay annually rather than incurring the upfront cost of purchasing software and the hardware. This Software-as-a-Service (SaaS) pricing model frees up capital that you can instead invest in your business rather than in hardware and software. You can spend on marketing or advertising or trucks rather than in servers that will be obsolete in 5 years… CLOUD VS. ON-PREMISE SOFTWARE: ARE YOU STILL DEBATING? Your budgeting process is simplified because you have a predictable, all-in annual software fee. You don’t have to plan for the ever-shortening upgrade cycles for hardware and the associated compatibility issues and software upgrades that add considerable cost and headaches. And, you won’t have big unanticipated costs if your server or network goes down. With Cloud ERP, you can easily scale up your users and computer resources or scale down to respond to changes in your business. . . . . . . . . . . . . . . . . . . . . . . www.adssolutions.com E-GUIDE

9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . TOTAL COST OF OWNERSHIP IS LOWER IN THE CLOUD Why are Cloud solutions more cost effective? CLOUD VS. ON-PREMISE SOFTWARE: ARE YOU STILL DEBATING? Cloud providers such as AWS purchase servers at a massive scale which drives substantially lower costs. • Their standardized web servers, virtualization, and on-demand resources lead to far greater Cloud server utilization than any on-premise server can ever hope to achieve - and this further lowers costs • Their data center and IT costs and security costs can be spread over a vast number of servers. • All this means that the costs of Cloud resources are lower than the TCO of on-premise systems. As Cloud providers (AWS, Azure, Google, Oracle IBM) compete, these cost benefits get passed on to you. . . . . . . . . . . . . . . . . . . . . . . www.adssolutions.com E-GUIDE

10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . THE BIG QUESTION ANSWERED: CLOUD SOFTWARE IS MORE SECURE With endless Ransomware attacks, security has become a grave concern for most organizations. Running your distribution software on your own server in an environment you control, feels safer. But given all of today’s cybersecurity threats, unless you have full-time security specialists on staff, on-premise software is significantly riskier than Cloud. Fully 64% of IT professionals polled say the Cloud is more secure than legacy systems. CLOUD VS. ON-PREMISE SOFTWARE: ARE YOU STILL DEBATING? The proof is that Cloud solutions are winning the most secure mandates. • In 2014, the CIA and 16 other intelligence community agencies moved secret and top secret classified information to AWS • Currently, AWS and other Cloud providers are bidding on the Pentagon’s $10B JEDI Cloud intended to hold top-secret nuclear technology • In Financial Services, Forbes reports that close to 100% of the server images are deployed to the Cloud . . . . . . . . . . . . . . . . . . . . . . The fact that government and leading financial firms feel more secure with Cloud software should tell you something! www.adssolutions.com E-GUIDE

11. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ABOUT THE BENEFITS OF CLOUD SECURITY Security Starts with Physical Security For on-premise systems, physical security means locking the server room door; compare this to Cloud providers’ data centers with multi-levels of physical control restrictions, cameras, and constant surveillance. CLOUD VS. ON-PREMISE SOFTWARE: ARE YOU STILL DEBATING? Access Control On-premise networks have multiple points of vulnerability including different software applications, workstations, browsers, employees’ personal computers, and mobile devices. And, all too often, the easiest vulnerabilities to exploit in the security system are the system’s users. It’s much easier to snag unwary users through phishing emails and get their passwords and account information than to create a virus. With an on-premise system, when employees check email, create sales orders, track inventory, or enter payments, they store all these records on the network. If one of these phishing scams, for example, lets malware into the network, it attacks all your data and applications. In contrast, Cloud applications are discrete, and access to one (e.g., hosted email) doesn’t give access to another (e.g., Cloud distribution software). . . . . . . . . . . . . . . . . . . . . . . Also, access to a Cloud application is via a website URL. This means you can eliminate RDP access to your network, which is very unsafe, and a common source of attacks. Access to your Cloud distribution software doesn’t give any administrative rights to the Cloud server running the application, so no malware exploits are possible. www.adssolutions.com E-GUIDE

12. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . BENEFITS OF CLOUD SECURITY ABOUT THE BENEFITS OF CLOUD SECURITY (Cont’d) Access Control (cont’d) Cloud distribution software allows you to specify Roles and Permission for all users. So, even if a user’s account information is compromised, these Roles and Permissions limit the ability of hackers to access sensitive data. CLOUD VS. ON-PREMISE SOFTWARE: ARE YOU STILL DEBATING? Further, the lack of direct access to the data makes it more difficult for disgruntled or ill-intentioned employees to use the data negatively, thereby reducing another element of human risk. Security Threat Capabilities Cloud providers have armies of specialists in cybersecurity intrusion prevention, intrusion detection, threat management, and remediation. In addition, the infrastructure of a Cloud platform is constantly monitored around-the-clock for potential security threats. And, security threats are becoming ever more sophisticated. As a result, except for the largest global enterprises, most on-premise or out-sourced IT staff won’t have the specialized expertise necessary to block, isolate, contain and remediate security breaches Frequent and Ongoing Audits . . . . . . . . . . . . . . . . . . . . . . Cloud providers undergo annual audits to test and verify their security systems and processes. Other than the largest enterprises with sizeable internal IT departments, this kind of testing is typically non-existent for on-premise, legacy systems. In addition, many legacy systems evolved over time on different platforms, and operating systems with different vulnerabilities and so can more easily fall behind. www.adssolutions.com E-GUIDE

13. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . SUMMARY While some companies still struggle with the Cloud vs On-Premise decision, there are clear analogies to other everyday choices that are instructive: CLOUD VS. ON-PREMISE SOFTWARE: ARE YOU STILL DEBATING? Consider how you manage your business data and compare that to how you manage your company funds. Maintaining your applications and data on an on-premise server is akin to keeping your funds in a locked drawer in your office. Anyone breaking into your office can steal your money – just as a hacker breaking into your network can steal years of customer information, operations data, and accounting records. Moving your applications and data to the Cloud is analogous to putting your funds in a bank which has all sorts of protections against being broken into. If you had a heart problem, you’d probably want to be treated by a specialized cardiologist rather than a primary care physician. Like cardiology, cybersecurity is very specialized and the threats evolve so quickly that it's difficult for anyone other than specialists to keep pace. For this you want a Cloud provider like AWS in your corner, not your local IT guy.   . . . . . . . . . . . . . . . . . . . . . . With the Cloud vs On-Premise software debate, we’re at the point where the scales clearly tip in favor of Cloud solutions. Don’t put this off and forgo the productivity and financial benefits, cost saving of the Cloud and potentially incur catastrophic cybersecurity breaches. www.adssolutions.com E-GUIDE

14. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Accolent ERP software is optimized for and used by distributors across many industries (food, restaurant equipment and supplies, specialty tools, industrial products, plumbing supplies, janitorial, paper, chemical supplies, electrical components, electronics, and more). ABOUT ADS SOLUTIONS CLOUD VS. ON-PREMISE SOFTWARE: ARE YOU STILL DEBATING? Business across the country rely upon Accolent ERP software to control inventory, purchasing, customer service, online ordering, accounting, and fulfillment from their warehouses. Accolent ERP is developed by ADS Solutions® which has been creating software for small and medium-sized wholesalers and distributors for Accolent ERP software supports flexible multi-level pricing, selling and purchasing in multiple units of measure, catch weights, processing, rentals and recurring billing, special orders, drop ships, and more — all designed to simplify complex tasks common to distributors and light manufacturers. over 30 years. Accolent ERP is the leading, natively Cloud-based software solution that uniquely delivers features optimized for small and medium-sized wholesale distributors and light manufacturers. bar coding, credit card . . . . . . . . . . . . . . . . . . . . . . www.adssolutions.com E-GUIDE