Cloud Computing Will Take Over by 2016

It has been seen that cloud computing will continue taking the limelight even in the next 5 years. The conclusion was drawn after this said accounting software made it to the top 10 predictions for the IT industry. This was performed by the research body, Gartner.

By the end of 2016, more than 50 percent of Global 1000 companies will be storing their data and information in the cloud as their accounting software for business. This is a huge increase from the more than twenty percent who are already using the technology today.

However, there have been mixed reactions on this subject. According to Jignesh Shah, Vice President for Business Infrastructure Solutions of Software AG:

“In markets like North America it already accounts for 20 to 25 per cent (of IT data storage). Also, it is important to keep in mind that when talking about applications, it is not just to do with big chunky applications like Oracle, but a whole plethora of specialised apps.

“If you look at the entirety of Cloud computing infrastructure today, SaaS is the only layer that is really making money. And the margin is growing, both from an enterprise (consumer) and vendor point of view.”

Furthermore, he said that it will be difficult for companies to fully utilize cloud computing.

On the other hand, Andrew Bearsley of HP Application LifeCycle Management said:

“I look at things from an applications and transformational perspective, and the reason I strongly disagree with any suggestion that by 2016 over 50 per cent of all ISVs will be pure SaaS providers is, quite simply, the word ‘pure’.”

Today, many companies are already utilizing this cloud-based solution but are combining this with the traditional physical equipment in the office.

Cloud Computing: A Cost-Effective Choice for Businesses

Cloud computing is amazingly making waves today with many small businesses availing it as their software for accounting. This Australia accounting software has allowed companies to enjoy higher efficiency at a lower cost. Cloud computing also allows companies to recover data, manage data and information, as well as ensure security.


BBC declared last year that the software for accounting has “gone mainstream” as many businesses have transferred their businesses to the cloud.




Some advantages of cloud computing are the following.

• Instead of a small business purchasing an accounting software, they can utilize a third party-owned software that they can download into the computer. Since it is online, an internet access and computers are the only requirements to access the servers.

• This software allows all employees who have account information to access the servers. They will be able to work and collaborate from anywhere using Word, Excel, and other programs supported by Google.

• The provider of the accounting software secures data given to them and backs it up as well should something go wrong with the system.

• There is no need for constant upgrading.

• A company is able to save some significant amount since it does not have to spend on ICT personnel.

According to Richard Shaw, a BDC Consultant in Toronto, “It’s a huge cost saving.”

He added that as a rule of thumb, about 65 per cent is saved by a company when it implements the “cloud” as compared to the conventional software.

In fact, cloud computing was identified to be “among the top technologies for both cost reductions and growth” based on a recent internal BDC study.

Shaw understands that people have some difficulty entrusting their data on remote servers. However, he is also believing that these data are more secured on the “cloud” since it offers back ups and security.

Australia: Popular Place for Cloud Computing

Not many countries have grasped the advantages and benefits that cloud computing offers like Australia.

In the new survey conducted by Forrester on behalf of VMware, Australia’s fondness for cloud computing, the accounting software for business, has once again been emphasized. This was according to the report of itWire.

Cloud computing has been perceived as a strategic business investment by some 47 per cent of businesses in Australia. This is in comparison to other markets as its number one benefit is cost reduction.

Compared to over a year ago, there has been an increase of seven percent in small businesses in Australia that already use the accounting software for business. This is shown with 67 per cent of them using cloud computing.


"What is clear from the survey is that Australian companies are ahead of the game when it comes to cloud computing," says Duncan Bennet, Managing Director of VMware Australia and New Zealand.

Solid financial results have been enjoyed by VMware in the third quarter of this year.

Cloud Computing Users Should Ensure Good Relationship with Provider

With many companies now using cloud computing solutions, companies using these latest cloud computing solutions have been urged to make sure that they have a good relationship with the manufacturer that is providing them.

According to Seth Robinson, one of the authors of the CompTIA second annual Trends in Cloud Computing report, the so-called Service Level Agreements, or SLA, is a key factor in any deal to purchase and secure a cloud computing contract.

Robinson further said that a SLA is "very important" and an agreement must be reached prior to any investment in technology taking place. This is so because there are so many companies that go directly to the internet and just pick up services and sign off on things and begin using them.

Likewise, with the cloud, many companies are trusting a significant portion of their IT to third party provider which increases security risks if not done properly. So it is at times like these that it is a must that companies focus on having a healthy relationship with the cloud computing provider.

Cloud computing is the delivery of computing as a service rather than a product, whereby shared resources, software, and information are provided to computers and other devices as a utility (like the electricity grid) over a network (typically the Internet).

Cloud computing provides computation, software, data access, and storage services that do not require end-user knowledge of the physical location and configuration of the system that delivers the services. So it can store information derived from software for accounting like information input into invoicing software or any other accounting software for business.

Robinson’s comments emerged as James Peel, the product manager at Opsview – an open source platform, stated that in order to ensure that the cloud computing service is being deployed in an efficient manner, companies in the UK must monitor the way staff use these services.

UK vice-chairman of EuroCloud, Phil Wainewright, had recently praised cloud computing for its offer of high levels of security and how difficult it makes it for outsiders to access stored information.

Factors for a Successful Cloud Computing

Cloud computing is a new accounting software for small business that deploys information in the “clouds”. This helps a business save space as they no longer need many computers to store data and information. The data are stored in a data center and web servers provide the information.

However, much as it is considered advantageous, there are users still who fail even after they have used the said online accounting software. In order for a successful cloud accounting operation to happen, then the following factors have to be considered.




1. As opposed to cloud computing focusing on infrastructure, it would be better to focus on the four key areas namely: strategy, business processes, technology, and people skills.

The usual mistake people make is focusing on infrastructure first and then checking if the deployment has met the overall strategy or not. What must be done instead is to invest in business management, people, and processes before using the technology in order to ensure success in the cloud computing. The strategy has to be built first and then technology and people skills are checked to see if they are aligned with the overall strategy.

2. According to the report of the SearchCloudComputing by Intel, a computer parts manufacturer, the right application software, storage, network connectivity, data and processing must be put together for the creation of an efficient system.

This is known to result to a large pool of storage space that will eventually lead to higher levels of utilization and efficiency.

The report added that making all components of cloud computing work in a flexible manner is the key to a successful cloud computing.

Recently, the cloud is said to be recording huge take-ups at this current time.

Cloud Computing: It is Right for Small Business?

Cloud computing has become a trend for many large scale businesses. It is a business accounting software that allows predefined users to access their data anytime, anywhere. The best part about it is that since it is online, there is no need for the business owner to be physically where the data source is. However, it has been advised that small and medium scale business should also engage in cloud computing.

"If you look at the market research that's being published now, I think in particular, the ready-made cloud applications that we call SaaS (software as a service) are certainly becoming a big element of choice for small businesses to quickly and cost effectively fulfill computing needs that they find emerging," said Phil Wainwright, Vice Chairman of Eurocloud.

“Some of the larger companies have been using infrastructure and platform for some of their development efforts but companies across the board - especially the smaller companies - have been using software as a service. It's very accessible, it's very affordable and it's simpler to begin a transition with something like that," according to an author of CompTIA Cloud Computing report, Seth Robinson.

Benefits of cloud computing

1. Even small businesses have capacity issues. Cloud computer addresses these.

2. It eliminates the need to acquire the company’s own servers and the IT specialist to take care of it.

3. Fees to be paid are not uniform for all businesses. This depends on the amount of space or capacity need of the company.

4. Cloud computing saves the business and its company owner time and effort by letting them focus on their core business while it takes care of the business processes.

Cloud computing providers

Google, as an internet giant, also provides cloud computing. Among the Google apps are Gmail for email, Docs for file sharing, Calendar and sites.

For other companies, they have software-as-a-service which is a subset of cloud computing. An example for this is the web-based leave management form that gives the employees the convenience to file for leaves anytime and anywhere.

According to the Software and Information Industry Association (SIIA), a certain degree of “flexibility and scalability” among small and medium-sized enterprises is being expected by customers.

Source: Codestone.net, Ihotdesk.com, Learning.allcovered.com

Accounting is Inevitably Changing

The technology sessions at the recent AICPA Practitioners Symposium and Tech+ Conference in Las Vegas has raised one important lesson. That is the manner by which the accountant handles the business could mean the difference between staying in business and retaining clients or being lagged behind the competition and eventually closing the business for good.

However, no one can also put the blame on accountants for the slow response to change. The question here is not really with when they will accept the next wave of change, or if they ever will accept this change. It is how far lagged we will be when this happens.

Do cloud and mobile technologies really provide the answers for most firms?

The answer of AICPA is YES. Though, it has made no statements as to where the profession needs to go. If doubts of this notion arise, then the answer is nowhere else but in the statements and actions of the marketing arm, CPA2Biz, and its president.

The most obvious signal for the expression of the AICPA’s desire to make accountants embrace technology for their own benefits is the combining of Prac and Tech for the second year in a row. But if this is still not enough sign, then the message was drove home by the keynote address of AICPA President and CEO, Barry Melancon.

“We are facing a situation today where technology that relates to the profession and ensures the profession survives is coming to light. It is the most significant technological time since the microcomputer,” Melancon said. “Cloud computing is a fundamental circling back in the client accounting world as cost structure and profitability is changing. Mobile computing is going to change the way we do accounting and interact with our clients,” he added.

Other points that add to the statement of Melancon were those discussed in the information sessions. There were the usual representation of showcases of vendors including the general “how to” sessions. Cloud and mobile technologies were also looked at and how these practices may be improved.

There is already pressure on accountants to change. They however still need more evidence of the direct benefits. A frustration expressed by an attendee in the session entitled, “Create New Sources of Revenue with Cloud-based Accounting Applications”. He loudly said that “all I’m hearing is the cloud is here, and you are an idiot if you are not there. Where’s the ROI?”

Source: Information Management »