Is Cloud Computing Really the Answer?

Cloud, cloud, cloud.   All you hear about these days is the importance of being in the cloud.  According to most industry experts, if you’re not moving your applications to the cloud, you must be crazy.   Is that true?  Maybe, maybe not.  As with most things in life, it all depends.

If you are a software vendor, the answer is absolutely “YES”.   There are significant economic and competitive advantages for software vendors to be in the cloud.  This is particularly true if their applications are multi-tenant, which basically means that they can get all of their customers on the same, most recent version of their software.    If everyone is on the same version of the software (i.e. same code), it’s much easier to support and, theoretically, it should be much easier to innovate and add new functionality.   Plus, the on-going subscription fees provide more profit for investing in R&D which again leads to faster innovation.

If you are an organization with limited internal IT resources and you don’t have the time or desire to deal with IT infrastructure issues, then the answer again is absolutely “YES”.   Putting your applications in the cloud gives you better security, greater scalability and, in most cases, more reliability.   Plus, it’s easier to budget for because you know exactly what your costs are going to be (i.e. the hosting and/or subscription fees).   Furthermore, if you are using a multi-tenant Saas (Software as a Service) application, you will theoretically (as mentioned above) be able to benefit from faster innovation.

On the other hand, if you are an organization with an internal IT department and/or you have already invested in your own internal data center because you have an on-premise line of business application that is critical for your operation, then the answer is definitely not “YES”.   It’s probably a combination of both “YES” and “NO”.  It’s “YES” for some applications like e-mail, office productivity, CRM and expense management.   It’s “NO”, however, for your line of business applications like your ERP or financial accounting solutions.

Just because everyone says that you have to be in the cloud and you have to be using cloud applications, doesn’t mean that’s true.  As with anything, it depends on your situation.  If you’re not sure what makes sense for you, get a second opinion.   We advise on and support both cloud-based and on-premise applications, and we would be happy to give you an objective opinion if you need assistance.

Contact the Maner Costerisan Business Solutions & Technology team at or call us at 517-323-7500