What does the Cloud offer finance?

What are the deployment options?
In recent enterprise solution studies, 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. The following options were presented:- Software as a Service (SaaS): Software is delivered only as a service, not on disc or other media to then be loaded onto another machine..
- 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.
- Hosted by an independent third party: Software is licensed by you, but you pay another party to manage and maintain (host) hardware and software.
- 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.
SaaS or Cloud?
While ‘cloud’ and ‘SaaS’ are often used interchangeably, there are some key differences to note. Cloud refers to the accessing of software, data, and storage over a network such as the internet. Perhaps you bought a license for the software and installed it on your own devices or those owned and managed by another, but your access remains through the internet, aka the ‘cloud’, regardless of whether it is public or private. SaaS is exactly what is implied by the acronym. Software is delivered only as a service. It is not delivered on a disc or other media to be loaded on your own (or a third party) computer. It is usually paid for on a subscription basis and does not reside on your computers at all. This means that all SaaS is cloud computing, but not all cloud computing is SaaS. Traditional on-premise or hosted solutions might (or might not) be accessed via the cloud, although this is more likely to be a private cloud. Those delivered as a service (SaaS) might be offered as multi-tenant or single-tenant (also known as multi-instance) or both.Single-tenant or Multi-tenant SaaS?
With a multi-tenant solution, there is only one instance of the software itself. Each subscriber’s data is segregated and secured. While everyone runs a common set of code, configuration settings may be used to tailor the look and feel of the solution and to personalise business processes. With a single-tenant 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). Providers delivering on-premise solutions must 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 databases, 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 they feel they can deliver a more customised solution through multiple instances. But with modern architecture and a strong platform, we’d question whether invasive customisation is even necessary or advisable. If the customisation 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, then don’t do it. Don’t risk building barriers to further innovation. It’s really as simple as that.The benefits of SaaS
Still unsure of your deployment options? Have a look at the following possible benefits of moving to a SaaS solution: They can be broken down into categories as follows:- Innovation
- Risk
- Improved access and transparency
- Cost considerations
- Growth and distributed environments
Summing up
When SaaS was far less popular, participants worked hard at analysing its pros and cons. Now, with all the media and vendor hype, it appears to simply be a given. The surge towards the cloud seems to be unstoppable, and as people and companies accept the inevitable, they’ll stop looking at the decision with a critical and questioning eye. The choice between solutions and deployment options has never been greater. Look for these choices to continue to expand, but remember that with increased choice comes the need for better due diligence and good business decisions. Technology is advancing at a rapid rate, and it is important not to be held back by pre-conceived notions and misperceptions. 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
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