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VAT: How To Explain The Value of The Cloud To Business People

Weekly shopping receipt

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.

Categories: Cloud Computing.

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Comment Feed

8 Responses

  1. James Governor’s Monkchips » VAT: How To Explain The Value of The Cloud To Business People http://monk.ly/c1RySz
    This comment was originally posted on Twitter

  2. Look carefully at the shopping list @monkchips post. http://is.gd/buexF < star item at lower rate of VAT
    This comment was originally posted on Twitter

  3. I see broccoli, but no ice cream. Where’s the ice cream?!?

    Also… Horlicks AND Durex Extra Safe? Isn’t that a bit like belt AND braces?

  4. James Governor’s Monkchips » VAT: How To Explain The Value of The Cloud To Business People http://monk.ly/c1RySz RT @monkchips
    This comment was originally posted on Twitter

  5. @monkchips delivers powerful, simple example of how cloud rocks. http://bit.ly/9yT5Ru
    This comment was originally posted on Twitter



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Continuing the Discussion

  1. […] Governor recounts an example used by Zack Nelson, CEO of NetSuite, to demonstrate how hosted business software (aka Cloud Computing or Software as a Service/SaaS) helps companies adapt to fast-changing rules […]

  2. […] manage – Cloud and SaaS models can mitigate a great deal of this. Thus for example – how about rolling out changes to Value Added Taxation across an entire retail company in one day? What is more No Software has clearly worked fantastically well as a slogan for Marc Benioff and […]

  3. […] manage – Cloud and SaaS models can mitigate a great deal of this. Thus for example – how about rolling out changes to Value Added Taxation across an entire retail company in one day? What is more No Software has clearly worked fantastically well as a slogan for Marc Benioff and […]