4 reasons to jump to the cloud
If you own a business, chances are you're well aware of the increasing trend toward cloud computing. While many are still wary of it, several companies have found that moving financial applications to the cloud leads to cost savings, greater flexibility and higher efficiency. As a business consultant, I'm often asked by company owners whether they should make this move. My answer, invariably, is “it depends.”
While I've seen firsthand the many benefits of cloud computing, it's not for everyone. Whether it will deliver a significant return on investment depends on a number of factors, such as the company's software needs, geographic reach and culture. While making a final decision requires a top-to-bottom analysis, here are four signs cloud computing might be a smart business move:
• You have a mobile workforce that needs access to information anywhere, anytime. Does your business model require employees to be constantly on the move while accessing and updating company information? Updates made to cloud-based financial applications appear in real-time, which assures everyone that the information they're viewing is up to date.
• You seek greater collaboration between employees in different sites. Fostering collaboration between employees in multiple locations can be challenging, but cloud computing allows them to view and update the same documents without the trouble of e-mailing changes and potentially working from outdated versions.
• You have decentralized processes that are managed centrally. Compiling the financial data of multiple offices can require significant staff resources if the data are stored using on-premise software at each site. The cloud makes this far more simplistic. For example, closing the books at the end of the month is much less labor intensive when the records at each site can be consolidated with the push of a button.
• Your company is constantly updating its software, and you want to stay on the cutting edge of new technologies. Software programs are continually improving, and when on-premise software is in use, it must be purchased, installed and maintained internally, which results in “business interruption.” The cloud, on the other hand, not only allows companies access to the most current software, but its managed by a third party. You want to spend less on IT support. Most companies are continuously looking for ways to cut costs and divert more resources to their primary focus. Switching to the cloud allows this while also maintaining or enhancing IT capabilities.
It's important that companies making the move to cloud computing have a thorough understanding of the provider's security practices in numerous areas, some of which include access to company data and processes for securing it when it's in transit or in use on the server. The security concerns should be addressed in instances in which cloud computing will bring significant benefits for your company.
Many companies are finding that cloud computing's advantages far outweigh the challenges. As this practice continues to grow and the workforce becomes accustomed to its convenience, the cloud's ubiquity might offer yet another reason for companies to join in on the trend.
James H. Clarkson Jr. is a partner in the consulting group at BlumShapiro, with offices in Massachusetts, Rhode Island and Connecticut.
WBJ Web Partners
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