What can finance expect from the cloud?
In this article, we address the main hurdles facing finance today and identify some tools and technologies that can help you overcome these hurdles. We’ll look at how operating from the cloud offers more connectivity and innovation, while also providing remote access and a platform for growth and expansion, without sacrificing governance and control. The […]

Defining Deployment Options
In our last few annual enterprise solution studies (including our most recent in 2019), Mint Jutras asked how the participant’s current solution is deployed. In this study, we use “ERP” as shorthand for the software used to run the business, and that includes accounting and more. We offer the following options to choose from:- Software as a Service (SaaS): Software is delivered only as a service. It is not delivered on a CD or other media to be loaded on your own (or another party’s) computer.
- Hosted and managed by your ERP vendor: Software is licensed by you, but you pay your solution provider to manage and maintain (host) hardware and software.
- Hosted by an independent 3rd party: Software is licensed by you, but you pay another party to manage and maintain (host) hardware and software.
- Traditional licensed on-premise: You license the software and are responsible for managing and maintaining it on your own premises.
- Hybrid: Parts are licensed and maintained on-premise and parts (e.g. add-on modules) are SaaS.
Cloud versus SaaS
Many use the terms “cloud” and “SaaS” interchangeably, but there are some important differences. So, let’s distinguish between the two:- Cloud refers to access to computing, software, and storage of data over a network (generally the Internet.) You may have purchased a license for the software and installed it on your own computers or those owned and managed by another company, but your access is through the Internet and therefore through the “cloud,” whether private or public.
- SaaS is exactly what is implied by the acronym. Software is delivered only as a service. It is not delivered on a CD or other media to be loaded on your own (or a third party’s) computer. It is generally paid for on a subscription basis and does not reside on your computers at all.
Multi-tenant versus single-tenant SaaS
With a multi-tenant solution there is only one instance of the software itself. The data belonging to each subscriber to the software as a service is segregated and secured. But everyone runs a common set of code; configuration settings may be used to tailor the look and feel and personalize business processes. With a single-tenant (or multi-instance) SaaS solution each company is given its own instance of the (hosted) software, but may share common services, such as an integration platform, and security. With the distinct advantage of only having to maintain a single line of code, solution providers that offer only a multi-tenant SaaS solution are typically able to deliver more innovation than those that offer the same solution with a choice of deployment options (on-premise, single-tenant and/or multi-tenant SaaS). Solution providers that deliver on-premise solutions are forced to maintain multiple versions of the software. Very often the software is offered on a choice of operating systems and databases, and the vendor must support multiple release levels determined by its customers’ ability to keep pace with upgrades. For every person-day they spend on innovation, they spend another multiple of that day making sure it works across multiple environments. Those offering a multi-tenant SaaS solution exclusively can devote their entire development budget to innovation. Solution providers offering single-tenant solutions might not have to deal with different operating systems and data bases, but the vendor still doesn’t have the luxury of maintaining a single line of code because not every customer will be upgraded simultaneously. Indeed, some promote this as a “feature” that offers the customer more control over the timing. Some vendors choose to not deliver their SaaS solutions as multi-tenant for one of two reasons: Either their solution is not architected to support this, or because they feel they can deliver a more customized solution through multiple instances. But with a modern architecture and a strong platform, Mint Jutras would question whether invasive customization is even necessary or advisable. If the customization truly differentiates your business, it may be worth it. If it does not, if its only purpose is to perpetuate the way things have always been done (sometimes for no better reason than because an employee was unwilling to change), then don’t do it. Don’t risk building barriers to further innovation. It’s really as simple as that.Potential benefits of SaaS
If you are still undecided about your preferred deployment options, we share with you the possible benefits of moving to a SaaS solution. These benefits can be summarized into the following categories:- Improved access and transparency
- Cost considerations
- Innovation
- Growth and distributed environments
- Risk
Wrap up
When SaaS was far less popular, participants worked hard at analyzing the pros and cons of SaaS. Now with all the media and vendor hype, it appears to simply be a given. Like the tide, the surge towards cloud seems to be unstoppable. And as people and companies accept the inevitable, they stop looking at the decision with a critical and questioning eye. The depth and breadth of choice between solutions and deployment options have never been greater. Look for these choices to continue to expand. But with more choice comes the requirement for better due diligence and good decisions. Don’t be held back by pre-conceived notions and misperceptions about technology that is rapidly advancing. Not all deployment options are available from all solution providers and not all SaaS solutions are created equal—don’t treat them as a commodity. Make a careful choice that is right for your business.CFO 3.0 – Digital transformation beyond financial management
CFOs are playing a key role in digital transformation. Learn how you can move from a ‘historian’ to a ‘visionary’ within your business.
