Intacct has been promoting a paper from respected ERP industry analyst Brian Sommer. Brian wrote “Economics of Cloud Financials” which covers the varieties, costs, and benefits of financial systems in the cloud, from both a customer and vendor perspective. The paper discusses financial systems that are delivered on-premises, hosted by a 3rd party, delivered via single-tenant cloud, and delivered via multi-tenant cloud. You can find the paper here. Naturally, there are some key takeaways from the paper I want to bring to your attention.
In previous entries in this series, I discussed the financial impact to your organization of moving your accounting system to the cloud (Outsourcing IT, TCO). However, not all clouds are created equal. Many vendors are hosting a legacy on-premises solution and marketing it as “cloud.” Brian's analysis helps explain the key differences between a multi-tenant cloud and hosted deployment for your finance and accounting system.
- Are more efficient from and R&D spend perspective.
- Deliver functionality faster and with more frequency.
- Produce fewer bug “surprises.”
When choosing a cloud financial system vendor, avoid choosing a company that has simply taken on-premises software and put it on their servers. And please, please don't fall for something called “private cloud” when you really want the benefits of a multi-tenant cloud solution. Your best bet is to find a cloud vendor that efficiently deploys people, capital, and intellectual property towards delivering a best-in-class finance and accounting solution in a multi-tenant cloud environment.
Reasons why Intacct delivers the best economics to our customers:
- Multi-tenant data storage reduces costs and errors, so we do not pass on the costs generated by single-tenant solutions to our customers.
- Economies of scale allow Intacct to provide high system availability, backups, and disaster recovery at low cost.
- The Intacct cloud is built with ample excess capacity, available to whichever customers need it most, whenever they need it.
- The Intacct cloud provides controlled permissions and access, firewalls, scanning, and data encryption to protect your business at a scale far beyond what any one customer could afford.
Next time I will shift away from TCO and economics and get into a somewhat technical discussion of configuration vs. customization. It's a topic that confuses a lot of people so I'm looking forward to your comments.
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