A few months back I attended BusinessCloud9, a really excellent event run by my old mate Stuart Lauchlan, looking at cloud-based business applications. It was the least dorky Cloud show I have been to by some margin- the room was chockful of suits, with budgets.
Anyway – one story really stuck with me… because it utterly nails the benefits of the Cloud model for business applications.
Zack Nelson, CEO of Netsuite summed up the value of the model: Value Added Tax or VAT.
During the teeth of the financial crisis the UK government cut VAT by 2.5% to stimulate businesses. For companies running traditional on premise business applications this was a total nightmare. Didn’t matter whether you were a small business running Sage or a FTSE100 firm running Oracle Financials this was a painful change to make. Retailers were in a tough spot. How were they supposed to make all their systems compliant with the rule change.
Unless, that is, they were using hosted Software as a Service (Saas) applications. With the cloud, a change like this can be rolled out to every customer overnight- as easily as Google rolling out a new service.
So next time someone asks what’s the Business Value of cloud you can just say read my lips – Some. New. Taxes.