As we discussed a few weeks ago, many nonprofit organizations and businesses are looking to move their accounting software to the Cloud. As an accounting and CPA firm, we work with a variety of clients who use a variety of accounting solutions to manage their business or nonprofit. While we don’t think Cloud computing is for everyone, Cloud-based software can certainly benefit many businesses and organizations. Before our clients make a decision, we encourage them to look closely at the features of Cloud computing versus traditional solutions. This will give them a realistic view of the Cloud and help them determine if it is the right fit for their particular technology needs and wants.
There is a stark difference between Cloud computing and on premise solutions: Cloud solutions are provided as a service and can be accessed using an Internet connection while on premise solutions are installed locally on your company’s hardware and servers. The differences, however, do not end there. To help you better understand the differences between Cloud computing and on premise solutions, we’ve provided a list of the key differences between Cloud and on premise solutions. Use the comparisons below to help guide you to the right decision:
Access
Cloud computing: Can be accessed using the Internet or any mobile device (smartphone, tablet, etc.)
On premise: Can only be accessed on company computers (or through remote assistance)
Cost
Cloud computing: Subscription based, pay-as-you-go model (usually in the form of a monthly fee – low initial cost
On premise: Majority of the cost is paid up-front in software/hardware, training, implementation, and IT support costs
Security
Cloud computing: Software and data are managed in the Cloud by the Cloud provider
On premise: All data and software is managed on-site by your business or organization
Hardware Requirements
Cloud computing: No additional hardware is needed – only an Internet connection
On premise: Hardware and servers required to run the software
Upgrades/Maintenance
Cloud computing: Handled by the Cloud provider
On premise: Managed by your IT staff
Deployment Time
Cloud computing: Can be deployed more quickly than on premise solutions (still requires extensive planning and time)
On premise: Implementation and deployment requires an extensive amount of time and planning
Customization
Cloud computing: Software is customizable – all customizations carried forward when software is upgraded
On premise: Software is customizable, but customizations are tied to your current deployment and must be revisited during upgrades
Mobile Options
Cloud computing: Users can access software on their mobile devices using apps, mobile browsers, etc.
On premise: Users can only access software through the web browsers on mobile devices
Moving to the Cloud is a major decision, and it’s not the right choice for everyone. If you are questioning whether Cloud computing is for you, give us a call today. We offer technology consulting services to help businesses and nonprofits just like you determine what the best technology investment is for your company or organization.