Cloud Computing
TECHNOLOGY
Why Cloud Computing Matters to Finance
By Ron Gill, CMA, CFM
When was the last time you upgraded your ERP system? If the answer is “not in recent memory,” then you aren’t alone. About two-thirds of mid-sized businesses are running old versions of their enterprise resource planning (ERP) system—in some cases, it’s software that’s three or more versions old. This is the legacy of decades of on-premise (in-house) software deployments, incremental releases that never seemed worth the pain of a major upgrade migration project, and fear of losing critical customization.
January 2011
I
S T R AT E G I C F I N A N C E
43
TECHNOLOGY
But in the midst of rapidly changing revenue recognition rules and a constantly evolving regulatory environment, it’s more important than ever to have your business systems reflect the current business environment. At NetSuite, at the time of this writing (December 2010), we’re running the company on the current version of NetSuite’s cloud ERP solution—2010.2—that was released in October 2010. In fact, every other business running its financials on NetSuite’s cloud ERP—from the smallest business that started using it more than 10 years ago to the largest enterprise that signed up last quarter—is also running on the latest version of the software. In contrast, the fact that the bulk of finance organizations are running traditional, on-premise accounting systems that are too painful to upgrade is just one data point that the era of cloud computing promises to transform for the finance organization.
Figure 1:
Benefits of Moving to the Cloud
Speed of deployment 5%
Streamlines business processes 21% Lower cap ex 7% Easy upgrades 9% Access data anytime, anywhere 28%
Lower total cost of ownership 30%
What Is Cloud Computing?
No doubt you’ve heard the buzz about cloud computing. It’s a way of using business applications over the Internet, just as you use online banking or Gmail. No more expensive,
Why Cloud Computing Matters to Finance
By Ron Gill, CMA, CFM
When was the last time you upgraded your ERP system? If the answer is “not in recent memory,” then you aren’t alone. About two-thirds of mid-sized businesses are running old versions of their enterprise resource planning (ERP) system—in some cases, it’s software that’s three or more versions old. This is the legacy of decades of on-premise (in-house) software deployments, incremental releases that never seemed worth the pain of a major upgrade migration project, and fear of losing critical customization.
January 2011
I
S T R AT E G I C F I N A N C E
43
TECHNOLOGY
But in the midst of rapidly changing revenue recognition rules and a constantly evolving regulatory environment, it’s more important than ever to have your business systems reflect the current business environment. At NetSuite, at the time of this writing (December 2010), we’re running the company on the current version of NetSuite’s cloud ERP solution—2010.2—that was released in October 2010. In fact, every other business running its financials on NetSuite’s cloud ERP—from the smallest business that started using it more than 10 years ago to the largest enterprise that signed up last quarter—is also running on the latest version of the software. In contrast, the fact that the bulk of finance organizations are running traditional, on-premise accounting systems that are too painful to upgrade is just one data point that the era of cloud computing promises to transform for the finance organization.
Figure 1:
Benefits of Moving to the Cloud
Speed of deployment 5%
Streamlines business processes 21% Lower cap ex 7% Easy upgrades 9% Access data anytime, anywhere 28%
Lower total cost of ownership 30%
What Is Cloud Computing?
No doubt you’ve heard the buzz about cloud computing. It’s a way of using business applications over the Internet, just as you use online banking or Gmail. No more expensive,