The burgeoning use of cloud-based solutions is driving the replacement of traditional IT services to a significant extent. Undoubtedly, this is a change for the betterment. Larger proportions of the businesses believe that adoption of cloud-based applications and platforms will help them multiply their profit margin rapidly over a short period of time, by increasing revenue while avoiding the capital expenditure. Forbes supports this fact by revealing some of the insights from a recent Oxford Economics.
Thankfully, emerging cloud-enabled services has provided a robust platform for small businesses to streamline its various processes. This technology mega trend - cloud-based solutions are increasingly affecting wide variety of industries, ranging from cloud service providers to brick-and-mortar corporations. In order to diminish IT and infrastructure costs, businesses are increasingly shifting its processes in the cloud.
However, for few businesses handling accounts to other simple processes in the cloud is not a wise decision because of the myths and misconceptions surrounding the cloud space. Let’s take a look a closer look few common misconceptions hindering businesses from gaining cloud benefits:
Myth: Disturbs the Security Posture
The Reality: From large-scale industries to SMB clients’ feel nervous about sharing of financial data in the cloud. Thankfully, for every cloud service provider security is of utmost importance. Businesses running its operation in the cloud have every incentive to not only guard their resources against hackers, but also have tight security tools and systems which regularly monitor processes to handle any data breaches.
Businesses can ensure better security with cloud providers. As, hosting facility, associated procedures and policies followed by cloud service providers have exceptionally high security standards. In order to strengthen security measures, some of cloud-based accounting software firms deploy on staff "white hat hackers" and specialized cloud computing security experts to constantly test applications for any vulnerabilities. Additionally, cloud service providers frame processes that ensure compliance with domestic and international industry standards besides providing regular security updates for software.
Myth: Cloud Migration Saves Money Always
The Reality: Financial concerns form a critical part of any business decision and it is an undeniable fact that cloud solutions help to make big cost savings. Certainly, businesses can save a lot by eliminating the need for system maintenance, additional hardware and upgrades. 82% of businesses revealed that considerable cost savings can be achieved by moving its processes to cloud. But, this is not the case always applicable as it is difficult to find one-size-fits all cloud solution for every organization.
As per the Gartner's 2014 CIO survey, cost savings holds only 14% of the reasons that business moving its operation to public cloud. Careful evaluation of different pricing plans, entire cost of ownership as well as cloud needs based on use can help to reach at a decision whether or not any firm will be able to save money. Also, it is critical to evaluate drawbacks and advantages of operating expense versus capital expenditure for your firm. Thus, for successful establishment of business it is important to develop clear understanding of the fact that moving businesses to cloud is not necessarily a cost-saving decision.
Myth: Switching to Cloud Space Yields Instant Results
The Reality: Cloud technology is unique and migration to cloud entails unique set of challenges. Migration such as lift-and-shift does not provide businesses much scalability and lift-and-refit offers more benefits. Cloud move cannot benefit the complete workloads. So, cloud migration strategy must be rationalized carefully that may help all to take the leverage of cloud smoothly.
In order to derive better returns from cloud solutions, it is essential to categorize apps as those that have potential to run smoothly in the cloud, are ideal for cloud set-up and those that should stay on-premises. Applications ideal for cloud environment yield highest financial returns and reap great benefits in situations where compute resources are automatically scaled-up or down, based upon usage.
Myth: Control over Data is Completely Lost
The Reality: Well, the reverse is true with cloud solutions. With cloud services, businesses can get better control over access to financial data. Cloud solutions enable small businesses to collaborate easily with the in-house administrators, accountants, financial clients and business partners anywhere and from any connected device, without any hindrances of desk or office building.
Let's consider an instance, where you and a startups’ client using a cloud accounting software decide to work together on the books and the client decides that access to records is permitted to only in-house bookkeepers, administrators and business partners. This not only helps in maintaining the confidentiality of the records but also, helps to create a working environment anywhere, anytime.
Gist of All:
In spite of the immense benefits offered by cloud solutions, businesses often get gripped in the misconceptions associated with cloud and resist from adopting the cloud services to run their operations. Thankfully, developing an understanding of cloud computing model from right sources can aid in taking the complete leverage of technology and deploy right solutions in right way to fasten the business performance.
