5 Reasons to Avoid Cloud Computing SaaS Solutions & Why They’re Wrong
The use of cloud-based software as a service (SaaS) platforms is increasing rapidly within the corporate realm. Most companies today have at least one programme they use on a consistent basis that is linked to the cloud – such as Salesforce or Quickbooks. In fact, the SaaS market is expected to grow to an estimated $50.8 billion by 2018.
Research from PWC revealed that 73% of finance leaders believe that digital developments will change how their firm does business in 2015. This research also found that 63% of finance leaders thought that technological breakthroughs was the most critical megatrend impacting business today – yet only 19% believe they were prepared for what this leap into technology may bring.
So with SaaS platforms becoming progressively popular, why are some businesses and finance professionals still on the fence about investing in specialised, cloud-based software for jobs such as lease portfolio management, contract management, accounting or data storage?
It’s a valid point – as a finance leader, of course you should be concerned about the additional cost these advanced systems bring and weigh the ROI benefits SaaS may boast to their cost of adoption. Why would you want to pay for a service that is currently being done for free within your business?
However, in reality, inefficiencies are actually costing you more time and in turn, are damaging potential profit opportunities. For example, compiling reports and data for end of year lease reports can take days, if not weeks when done manually. However, SaaS lease management platforms, such as Innervision’s Lease Optimisation and Information Software (LOIS), can draw all the necessary data in minutes, presenting it all in easy to read dashboards with just a few clicks.
As well as saving time that can be better invested into your core business, SaaS automation reduces the impact of human error, by running complex equations instantaneously. Nearly 90% of spreadsheets contain errors and there are countless stories of businesses losing millions due to basic data entry mistakes. These costly miscalculations can be avoided when using intelligent, automated software platforms.
Most SaaS platforms are structured so you only pay for what you actually need. There are no licence fees, reducing set up costs and their greater scalability means that the SaaS vendor manages upgrades automatically, removing the need to purchase new editions of traditional software systems.
The security of our financial data, whether corporate or personal, is always a concern. With spam emails still annoyingly frequent and stories of mobile phone hacking, you’d be a fool if you weren’t concerned. Should that stop you entering your business’s important financial data online?
The truth is improved online systems and accessibility is always going to be a double edged sword – they may be more convenient, but there’s always to threat of data security. SaaS vendors know this, which is why they invest heavily in protecting their secure data centres, that are monitored 24/7 and have sophisticated firewalls and encryptions. In fact, many of today’s data centres are as advanced as those used by global banks to manage your internet banking.
Data security should always be a priority so make sure that you question and trust the SaaS vendor when investing in software. We are becoming more trusting of web-based finance with online banking and payroll systems are becoming part of our everyday lives. Provided the correct security measures are in place, the risk associated with SaaS software and its convenience is substantially reduced.
The integration of SaaS technologies and our reliance on web based processes has only really picked up momentum in the last few years. Businesses were still successful before SaaS platforms, so why bother investing in them now when your current processes get the job done?
While it is true that many organisation have managed just fine without implementing all these new-fangled systems, globalisation of businesses and advancements in technology have opened up so many new doors to help companies grow, increase productivity and save a great deal of time, hassle, resources and profit.
These SaaS systems are designed specifically to make business processes more efficient and cost-effective and even if your current systems are adequate, there is always room for improvement. When it comes to lease management, Innervision’s SaaS platform LOIS has a range of functions to improve their leasing. Our clients are able to track, manage and arrange the entire lease process, from lease inception to end of lease termination. Custom reporting, data analysis, personalised alerts and full audit trails are just a few of the features available that traditional software options cannot provide.
Yes, you may be managing your leases just fine, but the inclusion of specialised lease management software is the difference between settling for slow, inefficient systems and expanding into the future.
Data mining can be frustrating. Hunting down data and needing to upload it all can make you feel like you’re starting from scratch.
Reviewing and updating data is something most of us have been meaning to do at some point, but is not a main priority. Although tedious, data migration is the perfect opportunity to not only benefit from specialised SaaS systems, but also to assess and update your current data.
Part of Innervision’s lease management services includes the data migration process, making the transition much more efficient. Innervision’s leasing experts will help you find all existing and active leases and get them uploaded onto LOIS. With the upcoming transition of leases from IAS 17 into the new IFRS lease accounting standard, organisations will need to review their current leasing activity, so why not upgrade your lease management alongside the changes to lease accounting so you can be prepared for a smooth transition?
You are a busy person; you don’t have the time to get your head around all this. You’ve only just started to understand how to use your new phone, why would you want to learn all the features of software you weren’t even sure you needed in the first place?
There will always be a transition period when moving from one system to another, but fear of embracing modern technology should not be a reason to sacrifice improving your business processes. SaaS vendors understand you’ve got a lot on your plate, but remember, these systems are designed to make things easier for you. Most cloud solutions offer extremely intuitive interfaces, dashboard and reporting facilities and you’d be surprised how quickly it takes to become proficient using such systems.
Learning a new system can be off-putting, but the cost effective benefits and automated processes will allow you to run at your full potential. With your own account manager, training support and a bit of patience, you’ll be up and running in no time.
Corporate digitalisation is well and truly transforming business processes – even our coffee machines have new features for the perfect brew. Although there will always be sceptics, the fact of the matter is that businesses that do not embrace new technologies risk being left behind as cloud computing evolves. With big changes happening to IFRS lease accounting, now is the perfect opportunity for businesses to invest in improving their lease portfolio and asset management systems and bring them into the 21st century.
For more information on how lease management software can help optimise your business processes, download our guide here.
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