Metamorphosis - Technology Post

Metamorphosis

“A change would do you good.” — Sheryl Crow

The software industry is in the midst of a revolutionary change. Change is sometimes considered a constant in the world of IT; however, the model of the industry itself has only shifted a few times and each shift has changed the way people work with technology.

Early programmable computers were huge and expensive – what we may

now think of as mainframes. By modern standards, these early machines were difficult to use and their resources were not easily shared by large numbers of people. The next major

era in computing was the transition to stand-alone, personal computers (PCs); everyone could have one on their desk for productivity-boosting applications such as word processing and spreadsheets. The ability to network PCs together led to the client-server era; computing work was split between the PC as client and centralized servers. Email, the “killer app” of the networked PC, revolutionized the way people communicate at the office.

The Cloud

The next step, Cloud computing, is not substantially different from the client-server model we’ve come to know, save for a key detail: ownership. Infrastructure, platforms, and applications are changing from something that was once purchased and installed to a service, with a monthly or annual fee instead. In the Cloud-based model, computing is a utility, much like hydro, water or the Internet.

Pros and Cons

Pros:

Based on your business needs, the Cloud model may have some compelling advantages: 

 increased productivity: simplified processes and easy sharing of information 

 lower capital costs: infrastructure, hardware, and software costs are all shifted to the cloud provider(s)

 reduced overhead: easy information sharing and “accessible anywhere” architecture means your workforce could log on from Trois-Rivières or Tahiti just as easily as they could from their desk in Toronto

 expanded hiring pool: knowledgeable people are all over the globe; Cloud-based technology provides the opportunity to tap into this expertise without the costs associated with relocating workers and famil y members to a central location

 improved knowledge sharing: even if your staff are all located within the same office, they may benefit from the quick accessibility of Cloud-based software that’s always up to date

 more time: day-to-day minutiae such as running the servers and backing up data are handled by someone else as part of the package.

Cons:

The Cloud is not a magic bullet and has some potential disadvantages to consider:

 geographical implications: servers are physically located elsewhere; your data may be subject to the laws of the country in which it is stored, and this may not be the same country in which you or your business operate

 loss of control: a vendor manages the system, its functionality, and your data 

 potential security risk: online applications, regardless of whether hosted under your desk or

in a data centre by a Cloud provider, are always “on” and theoretically could be hacked.

Things to Consider

Financial Information Management

Cloud-based accounting services allow multiple users to enter financial data such as expenses, sales and deposits, anytime, from anywhere, and from almost any device. From a management point of view, it is important to ensure that every transaction can be traced to the individual who made the entry. Without this safeguard, accountability could go out the window.

The ability to connect your financial platform to your bank removes barriers; the ability to create invoices from literally anywhere, and enable customers to pay them seamlessly and instantly simplifies billing. Easy collaboration is another big advantage that allows your accountant or bookkeeper access to your books remotely.

Get to know conventional records management practices.

Record Retention

Modern financial systems may allow or even encourage storing digital versions of documents. Businesses must be sure they are following CRA and other regulatory authorities’ retention policies. Get to know conventional records management practices so you will understand which documents must be kept in original paper format, for example, or the length of time digital and/or physical records must be retained. Redundancy is also essential. Most Cloud-based servers back up the data to other sites. If you need to keep an in-house backup copy of your data, make sure your Cloud provider has this ability.

Integrity of Data

Consider what happens if you decide to change your Cloud-based service: 

 Will you be able to transfer the data from one provider to another?

      Do you retain ownership of your data?

      In what country is the data stored?

      Can I make backup copies on my own server?

      Can I recover my files if I decide to terminate the service and what is the cost?

Hiring, Communication and Collaboration

Communication and collaboration can be difficult in any company. In a digital world without physical boundaries, whether you are working together in the office or with your team at a distance, modern collaboration tools offer more features than mere meeting facilitation through screen, document, and digital whiteboard sharing, and more than simple chat, such as web, telephone, and video conferencing. There are even some collaboration tools that encompass all of these features, and more!

Understand and Adapt

The availability of Cloud-based applications and platforms will require owner-managers to adapt their businesses to embrace the virtual world. As with many other technological advances, however, the previous foundational technology never went away. We’re seeing the beginning of a trend: client-server-based computing is giving way to a Cloud-based model. Stand-alone and client-server applications will continue to become more and more specialized, serving niche markets, as Cloud-based computing becomes the norm. While this metamorphosis is taking place, the challenge for business is to understand and adapt to the changing technological world.