Cloud Wars Live with Bob Evans

Google Cloud's Innovation and GrowthThe Big Themes:Google Cloud's record growth and market positioning: In 2024, Google Cloud experienced five consecutive quarters of accelerating growth, including a remarkable 35% growth in Q3, up from 29% in Q2. Kurian attributes this success to the company’s ability to listen to customers, innovate with products that meet their evolving needs, and strategically invest in a strong go-to-market organization.AI cost reduction and efficiency: Kurian comments on Google Cloud's efforts to significantly reduce the cost of AI models. Through improved software stack capabilities and optimizations, Google has decreased the cost of AI by more than 10x in just six months. Reducing latency, improving response accuracy, and utilizing distillation (e.g., making models run on smaller devices like phones) have contributed to lowering operational costs while increasing model efficiency. This approach has resulted in a 15-17x growth in model usage in just five months.The evolving role of cloud in business transformation: Kurian notes a fundamental shift in how businesses view cloud computing. Initially seen as a way to reduce costs, cloud is now seen as a tool for driving business transformation. AI, analytics, and security capabilities are helping organizations speed up decision-making, optimize logistics, and gain competitive advantages. Kurian believes that the next wave of cloud adoption will focus more on enabling new business models, products, and markets rather than just reducing IT costs.The Big Quote: “We tend to look ahead by listening to customers and understanding their needs, and create in a disciplined way, new product offerings. If you look a the last five years, we've introduced enough steady cadence. First, we started with infrastructure, then we added databases to it. We used our strength with BigQuery to build out an analytics portfolio. We were one of the earliest to say . . . we should not only provide [customers] a secure cloud, but we should also build a security product portfolio. Every one of those has driven diversification of our revenue stream."

HighlightsCreating Opportunities for the CFO (01:50)The foundation for the CFO role is to keep customer costs under control and be compliant. With the emergence of copilot technology, it has created new opportunities for business; not only impacting tech roles but finance roles as well. It has become a great tool for making financial processes autonomous and reaching the first three Cs faster and more efficiently. For instance, it can make suggestions to improve workflows. Copilots can also perform actions based on data to create purchase orders or help with elements of ERP systems.Strategic Decision Making (04:45)CFOs and financial leaders can use copilots to make more informed, strategic decisions. With processes generating a variety of traces with transactions, CFOs can use copilots to consolidate that data. SignUp Software provides a dashboard for financial processes. Copilot can be applied to gain greater financial analytics; it can identify a problem efficiently, enabling users to find the root problem and resolve it faster.AI-Driven Financial Management (06:25)Financial processes can be time-consuming, such as the invoice approvals process. “We can help the approver with the most common ways that would be coded and just showing them with a little light bulb,” Hedin describes. “It’s an advanced algorithm…but it’s giving you advice on how you could do that and what has worked in the history, and also giving you the probability that the AI algorithm is actually right.” While there may be parts of AI that bundle inside the processes and work behind the scenes, copilot can be applied to specific processes to assist users.Investing to Innovate (08:30)SignUp Software has a full team focusing specifically on investing in AI to further innovations. This team has built a bot for support flows to help their customers. Users can ask the bot questions as well as use it for action-based scenarios, such as assistance with coding invoices and automating processes.

HighlightsCurrent Challenges (00:48)Manny names capital allocation as a major challenge for the office of the CFO. They spend much time thinking about which technologies and industry solutions are best to invest in. They have to determine which investments take priority, such as investing in tech that benefits the company’s back office versus their customers. Value creation is also a key consideration. “Our analysis on where do we invest those dollars has gotten a lot more granular and a lot more scrutiny around those decisions,” he says.“Many of the CFOs face the challenge of doing more with less when money has gotten a bit more expensive,” Hedin raises. Another challenge he notes is regulatory aspects. The three C’s — cost, control, and compliance — need to be as efficient as possible. Determining how to leverage AI can be a challenge on the technology side.AI Impact (07:17)When building out large language models (LLMs) and algorithms, you have to ensure you have the right governance and controls internally on the data to get the desired outcome. This is vital when starting out leveraging new technologies to drive business decisions and efficiencies. While this can be daunting, “there’s a lot of value to it,” Manny notes. Once it’s tested and secure internally, the next phase of an AI journey is to look at it from a customer-facing perspective.Hedin shares customer examples of applying machine learning and AI. “In the financial process automation space, AI is definitely saving a lot of time already today for a lot of CFOs,” Hedin says.CFO AI Concerns and Second Half Mindset (11:30)Korakis says the biggest risk is that AI outputs don’t necessarily align with the question an employee is seeking to answer. If a person thinks they’re feeding the algorithm or LLM all the right data points but they’re actually not, that’s a big issue. His company is ensuring good data governance.Microsoft has made Copilot actionable for ISVs like Signup; since it’s embedded in Finance and Operations as well as Business Central, there are actions that weren’t available before, Hedin says. It’s one thing to get intelligent responses, but when you can also start doing things such as generating a PO if one’s missing, then you have an assistant that can do a lot more things for you. It’s really exciting in terms of customer problems that can be solved.Korakis says in the first half of the year there’s been a lot of disruption in the macro environment that followed supply chain challenges: rising interest rates that created caution and the need to be very thoughtful in using investment dollars has slowed things down a bit. “I see that starting to phase off” and CFOs are more willing to spend as the second half approaches.D365 Trends (15:09)Hedin says AI is one big, obvious trend with Dynamics 365. The other is new regulatory demands. If you send an invoice to a customer in Italy you need to go through their tax authorities now so they can track it. A US customer asked to start invoicing in Germany and needed guidance. It varies by country. That’s a big challenge for the international companies as well – how to handle that in an efficient way.

Highlights2025 Expectations (02:07)Ashe has had the opportunity to meet with and hear from customers about the challenges they're facing so SignUp can determine the kind of support customers need. A common theme that he has noticed is around "measuring what matters and trying to see how they can move to a predictive model because there's a lot of uncertainty." When business leaders are looking at solutions like ExFlow by SignUp, Ashe explains that it's "something that when we get through our implementation, we feel like we've got a path for them to be able to help meet those goals and, hopefully, improve their relationships with their vendors and reduce some of those risks."ExFlow as an Enabler (05:30)ExFlow focuses on AP automation within Dynamics 365 on both F&O and BC. The office of the CFO is changing to be more strategic with investments, mitigating risks, and predicting potential opportunities. ExFlow takes the amount of time that an organization spends on invoicing, for instance, and compresses it to reduce potential errors and give time back to the business. It also helps organizations measure key elements so they can re-architect their business to be more efficient and plan more effectively. "I think that's where a lot of the real value comes from," Ashe says.Future of AI (08:10)AI will continue to have a huge impact, Ashe considers. For most organizations, AI will have a wider impact of a big-bang approach. "I think some organizations are prepared for that...People are going to slowly but surely get more used to just having an autonomous agent there to help them do their jobs."Previously, Hedin has discussed the premise of three horizons of AI that can be aligned with strategic decision-making and financial control. He elaborates on these horizons: The first horizon is having an immediate impact now, as it includes using copilots to optimize processes and models to become more efficient. The second horizon involves using AI to drive the setup of systems. The third horizon is more autonomous, allowing agents to manage reoccurring tasks, for example.Driving an AI-Strategic View into 2025 (14:46)"We're actually doing what we've always been doing," Hedin confirms. "We've been 100% a Microsoft-dedication ISV." He describes how SignUp Software builds on Microsoft's platform for industry-specific, horizontal solutions. "We need to be smart and use what they are doing and then build the last touch on top of that." This enables the company to build AI models that become better and better with each new generation.Although AI and its evolution is becoming faster and faster, as people are increasingly absorbing the technology, the learning curve still takes time. While AI technology is being adoption, it still requires knowledge to work through prompts, asking the right questions, and fine-tuning models. We need to be maybe one to two years patient before achieving the real autonomous level, Hedin explains, but there are a lot of efficient processes on the way.

HighlightsDriving Adoption (02:40)At its recent financial earnings call, Microsoft reported dramatic results from its last quarter regarding Dynamics 365 (D365), Business Central (BC), and Finance and Operations (F&O), with 27% growth quarter over quarter. Some core factors are driving this pace of customer adoption in the mid-market and the enterprise. Hedin names three:The number of old platforms that need to be migrated: To access the newest and best features, organizations must be in the cloud — otherwise, they’ll be missing out on copilot, for instance.Companies need to save money and be more efficient. Automation enables companies to do more with less.Security is vital in finance, especially for fraud detection and prevention.Hedin reports that SignUp Software had similar growth rates to Microsoft, so it has been able to maintain the same pace.Industry Innovation (05:03)Some vertical industries are quicker with their approach to modernization and digital transformations, especially in managing regulatory compliance and implementing other cybersecurity initiatives. Hedin describes the pace of innovation and modernization among various industries.All industries have invoices. However, the industries accelerating their pace of modernization and implementing advanced solutions are the ones that have the most to gain and with high volumes, notes Hedin. He lists retail and government as two of the top industries here.Partners contribute greatly to this pace. “It’s the solution architects and the business process designers that advise the customer on what they can do,” he says. When partners see the capabilities that come with modern offerings, they begin to suggest those offerings.Investing in Modernization and Automation (08:43)The office of the CFO should be keeping an eye out for key aspects and outcomes from their investments to modernize and automate. Efficiency and flexibility are two beneficial elements. “It comes back to process efficiency to have that low cost; you have to control compliance on those processes,” Hedin says.Modern technologies, such as automation and AI, come with a lot of fear and uncertainty as well as assumptions that they will take the jobs of humans. For those involved with the day-to-day operations of a business, that’s not necessarily true. Investing in modernization can enhance business processes and enable humans to be redeployed to do other tasks.  The 4 Cs (11:25)Hedin describes four Cs that can come with modern technologies and are essential when working with customers and partners, which SignUp Software puts into practice with its ExFlow offering:CostComplianceControlCopilotsSignUp Software is “heavily entrenched” in its research and development (R&D) department, Hedin says. Customers can improve their return on investment (ROI) by embracing modern technologies, deploying their employees to higher-level tasks, and benefitting from the four Cs. Another factor that Hedin mentions is the standard for CO2 emissions for companies with more than 250 people. SignUp Software offers a product for CO2 management to help companies manage data and have greater control in working toward becoming

Episode 46 | Driving Impact Through PartnershipThe Big Themes:Partner-centric growth: Software vendors are increasingly focusing on building strong partnerships with resellers and service providers. This shift recognizes that partners are not just intermediaries but key drivers of innovation and customer success. By investing in training, support, and co-marketing, vendors are ensuring their partners can effectively sell, implement, and expand offerings, creating a more collaborative and mutually beneficial ecosystem.AI as a key enabler: AI is transforming the software industry by enhancing product capabilities and enabling smarter, data-driven offerings. Both vendors and partners are leveraging AI to improve customer experiences, automate tasks, and offer more personalized, efficient solutions. This technology is rapidly becoming a competitive differentiator, and vendors are embedding AI into their platforms to stay relevant in an increasingly AI-driven market.Platform ecosystems and digital marketplaces: Vendors are evolving from offering standalone products to creating expansive platforms that integrate third-party applications. This ecosystem approach drives innovation, creates new revenue streams, and provides customers with more comprehensive offerings. By fostering digital marketplaces, vendors and partners can offer tailored, scalable solutions that meet a variety of customer needs while expanding their reach and impact.The Big Quote: “AI is the new UI, and you can't have an AI just exist within a singular system. You need the AI to be able to work throughout the business in an omnichannel sort of way."

Bayer’s Data Evolution with AlloyDBThe Big Themes:Data complexity and intelligent agriculture: Bayer Crop Science is addressing agriculture's complex data challenges. The company integrates data such as satellite imagery, weather conditions, soil data, and IoT device inputs, to drive innovation in seed development and farming practices. By leveraging cloud technologies like AlloyDB, Bayer's teams can support the future of farming, despite challenges posed by climate change and rising global food demand.Integrating BigQuery for comprehensive analytics: To further enhance its data-driven insights, Bayer integrates Google BigQuery alongside AlloyDB for extensive data analysis. BigQuery serves as the central analytics warehouse, receiving billions of phenotypic data points for in-depth modeling and decision-making. During harvest season, Bayer can quickly access and analyze comprehensive datasets, enabling better decisions across production and supply chains.Harvest season demands and system resilience: During harvest season, Bayer Crop Science faces intense pressure as high volumes of data flow in, requiring real-time analysis and decision-making. The peak demand period sees a sharp increase in read and write operations, making it essential for Bayer's data system to function seamlessly. AlloyDB played a crucial role in handling these spikes by providing low-latency data processing and high availability.The Big Quote: “Climate change is a new challenge. You see some of these forecasts coming out of academia that yields will go down by 30% — that will arrest this great trend that we've seen continually increasing over the last 100 years. We need to solve for that, and that's going to take new types of data and new approaches and these types of things."

Episode 54 | AI, CIO ChallengesThe Big Themes:Community Summit NA: Wayne talks about attending Community Summit and how the event stands out by offering user-driven insights that focus on real-world experiences with Microsoft ecosystems, rather than vendor-led marketing. The Summit provides a platform where users share practical, firsthand knowledge, allowing attendees to gain a deeper understanding of how Microsoft technologies work in real business settings. By fostering a community of real-world users, the Summit helps businesses navigate the complexities of implementing new technologies.The CIO’s evolving role amid AI demands: There's growing pressure on CIOs to adopt AI-driven strategies, reflecting a shift where AI, in particular, generative AI, is no longer just an optional tool but an expectation from executives and boards. This trend is reshaping industries differently. While sectors like finance can afford significant R&D investments in AI, others, such as retail, face tighter budgets and must be more strategic.Balancing innovation with cost control in AI Investments: They discuss the growing complexity and cost of AI investments, with Wayne urging CIOs to carefully evaluate the financial implications of adopting AI technologies. He points out that as AI tools become more integrated into business operations, their costs, including ongoing subscription fees, are likely to rise. CIOs must be strategic about which AI tools and platforms they adopt, ensuring that they do not overcommit financially.The Big Quote: “We're drowning in information, we've got to move faster, and some of the GenAI and traditional AI stuff is taking a lot . . . away from us so we can move to operate at a higher level of reasoning, of thinking, of overseeing."

Episode 445 | Reflecting on 2 Years of Generative AIThe Big Themes:GenAI's Anniversary: Reflecting on the two-year anniversary of GenAI hitting the mainstream, Bonnie notes that in reality, we still haven't seen a lot of changes yet in the sense that AI hasn't taken our jobs. The overall consensus is that many people are using it to increase productivity; the idea that we're replacing half the workforce overnight is not coming to be.Rapid Implementation: While some companies may not have much flexibility on their implementation timeline, fast and cheap isn't necessarily the best way to incorporate AI. Rapid implementation can lead to unanticipated risks and increased costs in the long run.Software Vendors and Partners: For customers to truly benefit from implementing AI, they need good partners to help them be realistic with their timelines and options. The good software vendors and partners are cautioning customers to ensure they know what they're getting into and making deliverables clear.The Big Quote: “Work with a partner that you trust and that's going to tell you the truth...They've seen it a million times. They know you as well and they know your resources. They know the scope of your project. Find those partners that you can really trust and they're going to help you [and] lead you on the right path.”

Transforming Business with CloudThe Big Themes:Role of chief integration officer (CIO): Joe Fanutti, originally the CFO of Bill Gosling Outsourcing, transitioned into the chief integration officer role. His role exemplifies the need for businesses to integrate people, technology, and operations, particularly as companies pursue both organic and inorganic growth. This evolving CIO title represents a modern shift in leadership.Automation and workforce efficiency: Automation has been a key enabler for Bill Gosling, particularly in managing high workforce turnover and streamlining administrative tasks. For example, automation in resume ingestion and candidate matching optimized the hiring process, reducing manual work. Similarly, automation in bank reconciliations and supplier invoicing allowed the finance team to focus on high-value tasks.Empowering employees with AI: Workday Assistant has transformative potential in enhancing employee experiences within organizations. Workday Assistant leverages AI to streamline HR processes, allowing employees to access information and complete tasks with ease through conversational interfaces.The Big Quote: "The payables team I have now is the same size as 10 years ago. So we're able to scale . . . . [from] 400 to 6,000 employees, but the payables team is the same size. How did we do that? Well, that's how you do it — automation."