As more technology providers move away from on-premises software in exchange for online cloud solutions, buyers have an opportunity to save money on once-costly software applications. However, those savings may not always be as big as expected.
According to an article recently published by CFO.com, through a series of common mistakes, organizations do not always see the level of savings from cloud computing that providers promise. The article refers to these mistakes as “hidden gotchas.”
Cloud computing is a blanket term referring to any number of technology applications sold to business and consumer customers that are hosted entirely on the Internet. Rather than install software on their own computer systems, buyers log into the application via an Internet connection.
One of cloud computing’s latest targets is the back office. Document management, spend management, and even Enterprise Resource Planning systems are all available today in the cloud. With no software to install or maintenance agreements to enter, cloud technology is typically cheaper than its on-premises counterpart.
However, some of the “hidden gotchas” outlined in the CFO.com piece include:
- Taking your unique business requirements for granted – Cloud technology does not allow for significant technology configuration.
- Ignoring financial commitments to existing hardware – Hardware investments you’ve already made are not cheap. Ditching them for the cloud can mean you’ll never see an ROI on those hardware purchases.
- Believing a traditional software provider’s cloud application is superior – Many organizations think it’s better to rely on an experienced brand when moving to the cloud. In some cases it’s better financially and practically to choose a provider that only exists in the cloud.
With the growth of cloud computing showing no signs of stopping, your back office will soon have to make the decision whether to jump onboard. If you do, be sure to avoid these costly mistakes.
For the full list of “hidden gotchas,” see the CFO.com article Here.