Cloud Computing What Accountants Need to Know
4/18/2015
Cloud Computing: What Accountants Need to Know
Journal of Accountancy
Cloud Computing: What Accountants Need to Know
BY ALEXANDRA DEFELICE
October 1, 2010
There’s no arguing that “cloud computing” is gaining a great deal of momentum. Worldwide, cloud services revenue is forecast to reach $68.3 billion in 2010, a 16.6% increase from 2009 revenue of $58.6 billion, according to analyst firm Gartner Inc. So what does this mean to the accounting profession? What are the benefits and risks? Who are the vendors in the proverbial sky, and how do you know you can trust them with your data—or your clients’ data, for that matter? This article answers some of those questions and explains the history and future of the cloud. The easiest way to think about cloud computing is as doing business on the Web, therefore eliminating the need for inhouse technology infrastructure—servers and software to purchase, run and maintain. Unlike traditional software, which is distributed and deployed onpremise, cloud applications are designed for Web deployment. They are multitenant (delivered by one vendor to many customers), and users share processing power and space that is managed by the vendor. Terms including “SoftwareasaService,” or SaaS, and application service provider (ASP) often are connected to cloud computing in presentations and articles, but there are subtle differences between them. (For an explanation, see the “Definitions” box accompanying this article.) The types of applications available run the gamut—from tax software to payroll to full enterprise resource planning (ERP) systems—and most often are leased on a subscription model instead of purchasing licenses. DOING BUSINESS IN THE CLOUD
Is it worth making the switch? Vendors and analysts point to several benefits to switching to a cloud environment. Quick implementation process. Most vendors claim their applications can be up and running in a few minutes because there is no software
Cloud Computing: What Accountants Need to Know
Journal of Accountancy
Cloud Computing: What Accountants Need to Know
BY ALEXANDRA DEFELICE
October 1, 2010
There’s no arguing that “cloud computing” is gaining a great deal of momentum. Worldwide, cloud services revenue is forecast to reach $68.3 billion in 2010, a 16.6% increase from 2009 revenue of $58.6 billion, according to analyst firm Gartner Inc. So what does this mean to the accounting profession? What are the benefits and risks? Who are the vendors in the proverbial sky, and how do you know you can trust them with your data—or your clients’ data, for that matter? This article answers some of those questions and explains the history and future of the cloud. The easiest way to think about cloud computing is as doing business on the Web, therefore eliminating the need for inhouse technology infrastructure—servers and software to purchase, run and maintain. Unlike traditional software, which is distributed and deployed onpremise, cloud applications are designed for Web deployment. They are multitenant (delivered by one vendor to many customers), and users share processing power and space that is managed by the vendor. Terms including “SoftwareasaService,” or SaaS, and application service provider (ASP) often are connected to cloud computing in presentations and articles, but there are subtle differences between them. (For an explanation, see the “Definitions” box accompanying this article.) The types of applications available run the gamut—from tax software to payroll to full enterprise resource planning (ERP) systems—and most often are leased on a subscription model instead of purchasing licenses. DOING BUSINESS IN THE CLOUD
Is it worth making the switch? Vendors and analysts point to several benefits to switching to a cloud environment. Quick implementation process. Most vendors claim their applications can be up and running in a few minutes because there is no software