It’s no secret that the cloud computing market has exploded in recent years. With talks of hosted applications, and data virtualisation, understanding how the cloud will benefit your business in the long-run can be confusing at best. The bottom line is that with shrinking budgets, and with more and more business processes going digital, the traditional way of managing financial data is becoming a strain on small, medium and large enterprise companies. The days of dedicated servers, and large-scale data centres may be long behind us. But the good news is that innovation is on the horizon in regards to financial software. Now, with this emerging cloud technology, you can manage a wide range of financial data with great ease.
Cloud Computing and Financial Software
Since cloud computing has become such a hot topic, and is the official buzzword of the latest IT trends, many in the financial sector wonder how the cloud will change financial software. Some argue that cloud computing will completely revolutionise how accounting and financial data is managed, and others claim that the risks of moving financial applications to the cloud are too great. In reality, the best solution is somewhere in the middle. Yes, the cloud is changing how accounting data is managed, but there needs to be a balance of cloud-based solutions, and traditional data management.
Hosted solutions for financial software and accounting management provide a host of benefits for businesses worldwide. The main benefit is cost. With the emergence of easily-accessible cloud technology, physical data management facilities are becoming more and more expensive. The cost of running a dedicated data centre is not only impractical, but disaster recovery solutions are becoming harder and harder to come by at a reasonable price. Moving your financial software solutions to the cloud will cut expenses and increase your overall efficiency.
The most vocal critics of cloud adoption are mostly concerned with security. With recent security breaches of major financial institutions, like PayPal and MasterCard, the security of the cloud leaves much to be desired. While disaster recovery for data centres may be pricey, the cost of having your secure financial data compromised my be even greater. The other part of this is provider quality. The last two years have seen many outages all over the globe in the cloud computing sector. This only increases the scepticism of new cloud-based technology for web-based financial application solutions. The hope is that cloud-based application developers are working overtime to find the right solutions to minimise security risks, and increase service provider quality.
Perhaps the top priority for cloud-based solutions for financial firms in 2012 is undoubtedly going to be security improvements. Financial software engineers are working tirelessly to develop more sophisticated encryption levels for financial applications. Additionally, 2012 will be the year where cloud and other hosted service providers will be ramping up quality to ensure smoother operations for customers. The goal is for more service providers to increase security, and have fewer outages throughout 2012.