A balanced financial case for web tools for key business functions
I want to share a few thoughts on why you should turn to the web for vital business systems such as the general ledger and customer records. I highlight some of the economic and operational risks you should be aware of before trusting critical business information to “cloud computing”.
Web based business systems are very much in vogue. There’s web based tools for multicurrency accounting, business planning, market research, CRM, expense form management, time tracking and sales force automation costing much less than traditional systems. It is of course possible to buy a complete system that includes all of this core functionality. These systems can overall work out less expensive for example Salesorder dot com is very low cost but similar systems like Netsuite – will cost you a lot more. Honest vendors will work with you to understand the lifetime costs of your system.
The capital risk for the buyer is substantially reduced by the majority of business web services being available on a try before buying basis and then supplied on a subscription basis. Some suppliers are happy to charge you monthly whereas others often insist on a longer term and therefore these players for example Netsuite – will cost you a lot more. Good vendors will always tell you why you shouldnt buy their system.
So many people mess this up when they choose these types of systems as there are hidden risks.
A number of the financial risks you are aware of can be the same as those you would encounter in traditional licensed software. I am talking of course about implementation, customisation and upgrades to new versions. It might be delivered over the web but it’s still software.
The monetary risks of exit are not often apparent. The task of information transfer and its associated costs are not often disclosed. The business web application industry is still in its infancy and even well established players like Netsuite – will cost you a lot more than you expect to extricate your critical business data from their systems. Do not fall asleep at the wheel on thsi one it could cost you your business. We’ll be adding more on this soon