What is cloud computing?
In computer networking, cloud computing is a phrase used to describe a variety of computing concepts that involve a large number of computers connected through a real-time communication network such as the Internet … cloud computing is a synonym for distributed computing over a network, and means the ability to run a program or application on many connected computers at the same time.
Is it all public?
Companies may have a mixture of Private/ Internal cloud environments; like an intranet as well as utilising more public/external environments.
The public elements are typically referred to as “the cloud”.
Where is the Market Going?
Bain & Company and Gartner have moved beyond aggregate forecasts, and are beginning to forecast by cloud and SaaS adoption stage.
IaaS Continues as Fastest-Growing Market Segment
The public cloud services market is forecast to grow 18.5 percent and to total in excess of $200 billion worldwide, up from $111 billion in 2012. Infrastructure as a service (IaaS), including cloud compute, storage and print services, continued as the fastest-growing segment of the market, growing 43 percent to $12 billion and expected to grow 48 percent to $20 billion.
Do we always get the benefits?
SaaS is cheaper during its first two years of use, Gartner finds, but the total cost of ownership over five years would be lower for on-premises software. It also warned that while most users will assume that they will be paying on a ‘pay as you go’ basis, there are still likely to be contractual considerations. In “the vast majority of cases,”, Gartner says that companies are pushed to sign predetermined contracts with fixed fees.
In its report Fact-Checking: The Five Most-Common SaaS Assumptions, Gartner also warned that SaaS is not necessarily faster to implement. While vendors quote 30 days as the normal implementation time, some software can still take up to seven months to set up.”
My Controller has also found that consideration must be given to acquisition and market consolidation. For example, we have seen that an App (IaaS) Provider for a Stock Control system was acquired by QuickBooks and then over time the integration with Xero was withdrawn. Thus, if you selected that App as your stock control system within a Xero environment; you had to change when integration was withdrawn.
It is also worth considering the size of the problem. In other words, the cost of “renting” all of the software (Saas) & Apps (IaaS) required to run and manage your business can become costly. Business owners should consider the “payback” on the investment and make sure that it is part of an integrated IT strategy that considers key processes from a “Lead to Cash” perspective in the business.
How do I know that I need a new Cloud Accounting System?
According to Smart CEO, these are 5 Signs You Need a Cloud Accounting System
- Too many manual processes
- Inadequate reporting
- Costly system maintenance
- Integrating accounting with other business systems
- Growth and change
What Vendor should I go with?
Top 3 on the Market – Xero, QuickBooks & Sage
- Xero considered the best on-line accounting system
- QuickBooks robust and positioned for small companies
- Sage solid control system, but weaker on reporting.
Can’t Ignore – Zoho
- ZOHO Books part of a powerful suite of cloud applications.
- Understandable and simple pricing model.
- Strong functionality we would expect at this kind of application.
- Good for process integration – easily integrated with other ZOHO services
Up & Coming – ClearBooks
- Entry level – Positioned for small companies
- Price would be the only current motivator
- No outstanding features – Weak in the market
- However, young London Based PLC start-up
- Evidentially had unscheduled downtime
So how do I choose?
- Key Comparison Points & Selection Criteria
- Financial Stability of company
- Access to capital
- Fundamentals as standard
- Reporting Capabilities
- Project Management
- Integration with other Applications
- Security Standards
- Downtime – Five nines standard