Straight Forward Analysis of Account Software in the Cloud
After watching Apple's presentation of the iCloud services, I found myself marveling at the progression of a system I learned about in a computer science class. Cloud computing has moved from a distant IT concept to the newest addition to Apple’s ubiquitous ‘i’ brand.
Cloud technology refers to storing data, software and resources on remote servers which are then accessed as needed and it has been making waves in the business world for longer than you might think. Businesses are starting to realize en masse that ignoring the potentials of this phenomenon can prove costly.
Though new to the consumer market, IT professionals have been throwing around the buzzword of cloud computing for years. The idea is nearly 50 years old, though only recently picking up speed for commercial enterprises.
Following the example set by 80% of Fortune 500 companies, some companies have been flocking toward the technology while others lag behind. Within the tech industry, 53% of firms are actively using the cloud while 32% of the manufacturing industry has made the switch.
A Business Force
The cloud is a resource which produces results, as evidenced by a 2010 study showing that 7 out of 10 cloud computing users will move even more applications to the cloud within a year. Obviously, firms are benefitting enough from the cloud that more and more processes are being entrusted to it. As we show increased reliance on the cloud, businesses are creating a strategic force which influences decisions across the spectrum of industries. But what are the main aspects of the cloud which cause it to be such a player in strategies and decision making?
It can be broken down into the areas of:
- Accessibility & Standardization
- Efficient Data & Information Retrieval
- Cutting Costs
Prior to the cloud, employees were limited to retrieving information only when on-site or through a request to those who had control of the data. Under a cloud system, employees can use their credentials to access information through any internet connected device.
Furthermore, workers can rely on this information to be uniform throughout the company and updated in real time. This has allowed for large increases in collaboration, especially in teamwork-heavy industries such as finance and accounting.
Efficient Data & Information Retrieval--Made Possible By Virtualization
In order for collaboration to be effective it must be real time. Beyond just having freer access to information, the cloud offers instant delivery and synchronization-breaking down the barriers of time delays and requisition responsibilities. Normally, dealing with data delivery or fact finding might have constituted 15 to 30% of an employee’s time.
With all of the pertinent information stored remotely, searching for and retrieving resources becomes the task of one as opposed to many. This is only possible through the process of virtualization. Essentially, physical information such as invoices or orders are converted to the digital medium and then stored on the cloud.
Cutting Costs (and Raising Revenues)
The true power of cloud technology comes to the forefront when looking at one area in particular: saving money. Primarily, the costs of maintaining on-site servers and data storage continue to rise as a company grows. Contracting these costs out lowers overhead and space requirements. Beyond physical savings, using the cloud for licenses for tools such as Microsoft Office or Exchange can save big-just under $2M in one case.
The cloud can raise money too. Think about it; with the cloud, employees are spending less time dealing with information delays and are given more time to get the job done. Faster turnaround means more time available for new clients or engagements, all with the same employee levels.
Go Cloud or Go Home
It is hard to deny the power of doing business in the cloud. Sure, there are some legal issues that can arise when dealing with the cloud on a global scale (namely information protection laws).
However when taking a holistic view of what this tech can offer your business and considering the future, where nearly all software is run through the cloud, ignoring the potentials of cloud computing is foolhardy. If any business wants to stay on the cutting edge of productivity, efficiency and cost cutting methods, look no further than the cloud.
Author: John Baxley
School of Business Management
Whitworth University
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