Switching Payroll, Other Systems to the Cloud? Points to Consider
Posted on Mon, Apr 25, 2011
Considering making the switch to cloud-based systems for your business? Roughly 62% of large companies in a recent survey have either implemented or expressed some kind of interest in cloud computing, according to The Wall Street Journal.
Before you transfer any of your systems to cloud-based providers, consider these points:
What will you save? Look carefully at the costs. How does the software provider charge for its services? Most importantly, what do you gain as a business by switching over to cloud-based services?
How complicated are your existing systems? If you're new to cloud computing, the Journal first recommends trying out simpler cloud-based applications such as email or payroll software applications to help your company make the transition to cloud computing.
Are there any legal issues with the software? Business owners should carefully examine and understand all software licenses.
Where does the cloud software provider save your data? Find out where your data will be stored -- whether it’s in the U.S. or some far country.
How accessible is your data? Get a clear picture of how the vendor will make your data available. How will your data be stored, and in what format? Is the format compatible with existing systems within your company? How long will the cloud vendor keep your records?
What kind of security does the cloud vendor provide? Company theft and accidental loss often occurs due to problems inherent within an organization. But if you’re going to entrust your data to a cloud-based provider, you need to know how well they guard it. Ask questions about their security protocols, and perform "rigorous tests" of their systems to gauge their data protection efforts.
Source: Plant, R. "To Cloud or Not to Cloud," Wall Street Journal, 4/25/11