Much like the earth’s climate has been undergoing a gradual shift, so has the climate for cloud-based business applications and systems. The use of cloud-based applications for personal purposes including email, picture-sharing, and listening to music has become ubiquitous.
As a result, people have become accustomed to accessing what they want, when they want, from wherever they want. Their tolerance for traditional desktop software has diminished. Each day, more businesses are embracing the cloud as they see how it can significantly reduce costs and virtually eliminate the need for the ongoing, time-consuming maintenance that’s required to keep traditional software running smoothly.
Commodity management companies’ slow adoption of cloud solutions
Many large companies have been slow to adopt cloud-based solutions because they hesitate to store a key asset – their data – offsite. Security concerns are the number one reason why they hesitate. The idea of having essential information out of company control creates discomfort. While security concerns make sense intuitively, the reality is that cloud providers have better security mechanisms than most companies. These companies invest time, money, and technology to plan for ways to avoid and counter attacks, much the way a bank invests more in security because management knows it could be a target. And companies do maintain control of their own data, which can be hosted on private servers and accessed at any time and from any device.
Commodity management companies have also invested a lot of time and money in their on-premise solutions, making a shift to cloud challenging. Having invested months, sometimes even years, implementing a solution makes users reluctant to admit the systems failed or subject themselves to another long, complicated implementation. They do not understand that cloud implementations are significantly shorter than on-premise implementations. Eka’s cloud-based CTRM software, for example, can be implemented in under two months.
The changing tide
Many commodity management companies are starting to adopt cloud-based CTRM systems due to technical innovations in cloud technology, increased pressure to reduce costs, and a growing need for more auditable, functionally-rich solutions to meet regulatory requirements.
As stated above, cloud-based applications can be deployed in less than half the time of an on-premise implementation, and they do not require capital expenditures because there is no hardware component. Users can easily scale cloud-based solutions by drawing on more of the vendor’s host servers. If they experience a decrease in demand, they simply scale back by using less capacity.
Cloud-based software updates are automatic and do not require end user input. The servers are offsite and updates are installed by the software company. Maintenance is also managed by the software provider.
Despite initial fears about data security, cloud-based platforms are more secure, with layered security and audit logs to guard against inappropriate access. Lost or stolen laptops can be wiped remotely to ensure data stays secure. Data is more accessible because it is stored in the cloud and can be accessed from any device, anytime and anywhere.