The cloud is more than just hot air
17 October 2011
In 2001, when chartered accountant Jacob Wandt set out to create the e-conomic accounting software – an online cooperation platform for accountants and their customers – “the cloud” was not a yet common phrase in the software industry.
Since then, cloud computing has fundamentally changed the way businesses operate and interact in the global market. The simple idea that Jacob Wandt had for a collaborative accounting solution ten years ago has now grown to service nearly 40,000 companies, with more than 75 employees and offices in nine European countries, and annual revenue of +7 million. e-conomic currently runs on an MS Centric platform with an MS SQL database and a .NET framework on Windows Application servers, and is built primarily on MS Visual Studio.
A paradigm shift
The resounding success of cloud businesses like e-conomic indicates that cloud computing truly is the next logical step for the IT industry, but there are still companies that are reluctant to take the leap into this relatively new territory.
In the Microsoft paper The Economics of the cloud, the hesitance towards the cloud is likened to the reaction to the invention of the car in the early 20th century. Dubbed “horseless carriages”, people were skeptical that cars could replace the trusty horse and carriage transportation method that had been dominant for centuries. Even banks claimed that “The horse is here to stay – but the automobile is only a novelty, a fad”. Of course we know how that turned out.
But why are businesses so hesitant to move to the cloud?
A recent Colt CIO survey asked chief information officers from numerous what their biggest concerns were about moving to the cloud. Security came up tops, with ease of transition, quality assurance, and cost saving pressures also ranking high on their lists.
Security has always been the main concern, as those new to the cloud weren’t sure that their data would be safe online – especially if stored on a foreign server in another country. However, this initial barrier has become a major strength of the cloud and nearly 40% of companies across Europe have adopted cloud service solutions for all or some of their business. In fact, cloud systems keep data far safer than if individually hosted on personal computers, as they are hosted by dedicated service providers where data security is paramount. Consider this: last year, nearly half of all breaches were caused by company insiders -- either by accident or malice.
At e-conomic, production equipment is housed in two different physical locations - meaning if one location faces any issues, the other location can take over straight away. Such steps keep data in the cloud safe and automated, thus infinitely lowering the risk of data breach.
A step in the right direction
National governments and administrations especially need to face citizens’ concerns about the cloud. Many Scandinavian governments have already managed to combat these concerns and even reap the benefits of cloud computing by adopting the platform in their daily processes.
In 2005, The Danish national government pioneered the use of the cloud in administration by making electronic invoicing mandatory for governmental transactions. Previously, more than 15 million transactions were handled in paper form, and this new system resulted in savings of an estimated € 120-150 million per year (eEurope Awards Exhibition Catalog, 2005). Other countries such as Norway also implemented electronic filing initiatives, e.g. by extending the tax return deadline if filed electronically.
Sky high success
The push for digitalization combined with the increasing acceptance of the cloud in today’s business marketplace has brought companies like e-conomic to the forefront and will ensure their ongoing success.
At the same time, the benefits for e-conomic customers are also increasing. With a positive outlook ahead, better collaboration opportunities with other cloud companies (e.g. for the creation of automated applications) and extended development possibilities are present to make the e-conomic accounting system even better, faster and stronger.
e-conomic’s upward climb to the sky has proved time and again that the cloud truly is a green pasture for new business modules – and much, much more than just hot air.
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