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Moving to the


By Heather Gorringe


loud computing or software- as-a-service (SaaS) is a term used to describe a fairly recent idea where you can rent or even borrow online software. For years and years small


and midsize firms have had very little choice in terms of system software: build your own bespoke system; cobble together something within a database and try and link that to an accounts package or a stock control package, or go for one of the “off the shelf” systems tailored to the business—the all-singing- all-dancing types that can easily be a year’s turnover in cost for many small businesses. Whichever you chose, that was just the start of the costs. There was the in-house server cost, which seemed to be a normal computer but cost upwards of £5,000. Then there were the network costs of hardwiring, then the maintenance costs. For our own small business these costs added up to quotes ranging from an initial cost of £35,000 to £82,000 and then an annual fee of between £4,000 and £6,000. These days, whether we are aware of it or not, many of us are used to cloud computing. Google’s Gmail is cloud computing but now it goes much further. In fact, your whole business can be run renting software online. Even better, it is available to you if you are a company employing thousands, if you are a one-man band, or indeed, anything in between.


The business model is simple; instead of buying software, you rent a system online. All users log into a centralised hub and access the system via a web browser using a password.


Case study


A mail order and ecommerce company employing 15 people across two sites—office and warehouse—uses a well-known accounts package and has built its own bespoke database for customer records and invoicing. However,


it has huge challenges linking the sales data and customer records with the accounts software.


Looking ahead, its stock control is manual and the company wants to integrate this with everything else, as well as having an easy way of linking with its website and externally with the two carriers it uses. In addition, it wants to integrate with its email service provider and lots more. Instead of the huge up-front costs and upheaval, the directors opt for a couple of companies “in the cloud” free of charge. They use them for a couple of months alongside existing systems; the office team accessing from headquarters and the warehouse team accessing from inside their own building. They use Skype to communicate via instant message, audio or video conference. Once they go ahead with SaaS there is no need for specific IT support—just hardware checks—and no need for prohibitive up-front costs. They pay for the modules they need and as they grow they add extra users pro-rata. The whole system costs a few hundred pounds a month and works out less than the yearly hardware maintenance cost on the conventional system.


Is it really practical? From a small-business perspective we are


used to relying on third parties for important services—payment providers, web hosting, email, advertising and much, much more. What is more important to me is whether or not we trust the company. At Wiggly Wigglers we have been using SaaS since February 2010—with Bristol-based Brightpearl—and have had an extremely positive experience. Try it yourself—you really don’t have anything to lose.


Heather Gorringe is founder of natural gardening supplies firm Wiggly Wigglers and a CatEx DCA board member.


The benefits of cloud computing


Cost: No need to buy expensive software—you rent it as you need it.


Keeping up to date: The system is updated and improved as more people join in based on what the customers need and want.


No need to commit to a system after just a few interviews and spec: You can try before you buy.


No need for high-spec computers along with their expensive maintenance contracts: All you need is a computer and internet access.


No problem with how to access the system: We can use homeworkers or I can get all my business information whilst on holiday; not necessarily recommended of course.


No worries about what device can access the system: Mac, PC, iPhone—they all work with no trouble.


No need to transfer information between contacts, sales, accounting: It’s all online.


You pay only for the services that you need: Perhaps you don’t need EPoS or stock control— you choose the bits you want.


The disadvantages of cloud computing


You need to be able to really trust your software provider: The service is online and disruptions can be completely outside your control.


All your files are in the software provider’s hands: Whilst you can export a lot of the data, you are dependent on one company to a large extent.


You are reliant on the connectivity and speed of the internet.


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