our people know how to support? At least now we know how to use our software. Sure there are problems, but maybe they can be fixed with add-on products to our small business accounting program. This isn’t like buying paper cups. I’m not even sure we need a new system. Maybe it’s just a factor of my people learning how to deal with the increased workload.”
A brief debate ensued, with Esther arguing a cloud solution would make the transition to new software simple, lower costs, and be faster to implement while James countered cloud computing was still in its infancy and too risky.
Looking on, Peter could tell the two were at an impasse. Esther could pick a vendor tomorrow and run with their solution, while James sounded like he would rather hold on to his comfortable, “proven” yet broken system until it killed his company. A compromise had to be reached.
“Alright! Time out!” Peter interjected with a smile. “Let me suggest a compromise.”
Esther and James quieted down to listen to the ever-diplomatic Peter. “First of all, let’s not lose sight of the fact the only reason you share this big problem is because you are so successful. It may surprise you, but our non-profit has similar problems. We have also outgrown our accounting software so it is in all of our best interests to find a solution.” Peter paused for effect, and the new information about the non-profit’s problem further caught their attention.
“I propose each of you take the next month to identify and do preliminary interviews with five different companies that you feel can meet your needs. Then, after our next board meeting you can present a one-page summary on each of the top two companies you feel offers the best solutions.”
“Sounds reasonable,” said Esther.
“Yeah, it’s alright with me,” echoed James.
Peter was particularly glad Esther and James were fast tracking ways to solve their dilemmas because answers to their problems might help him solve his technology challenges too.
After saying their goodbyes, Peter was deep in thought returning to the office. He wondered how Esther and James would approach the situation. James was a natural skeptic, but Esther was born to sell. Sales people could be the easiest ones to pitch; therefore Esther’s quick decision-making style could make her an easy target for a lying sales person.
Then again, if a shrewd sales person sold James a solution based on his fears rather than his true needs, James could be led like a lamb to the slaughter. Peter wondered if they would balance themselves out in this process or just choose to go their separate ways.
Chapter 7
What Cloud?
As Peter returned to his office he thought less of James and Esther, and more about the technology challenges of his non-profit. It was spreadsheet hell. Maybe his organization’s growth could help him purchase a new system and the payback of increased efficiency would reduce his long term overhead.
Without letting his staff know, he had started a process to create a list of what they needed from their accounting and business software to support the continued expansion of the organization.
Angie, his trusted assistant, walked into his office as he logged into his computer. “So how was your meeting?”
“Only okay,” Peter replied as he split his attention between checking his email and her question. "James and Esther were distracted because their companies have outgrown their accounting software. As a result they were not as engaged in the meeting so we did not get as much done as I had hoped."
"Well at least it gives you something else in-common with them," responded Angie with a smile. Although the general staff did not know Peter’s plans for a massive software upgrade, he trusted her with everything about the organization. "And since you bring up the subject, I have identified two additional things we need from our next generation of business software. Ideally, we would like to:
1.Analyze the delivery of our services and measure attributes of our organizational performance to confirm efficiency and effectiveness.
2.We also need a better way to manage our marketing campaigns so they are targeted more specifically based on donor type, project, and geography.
“I added these to our list. Do you want to review the list again?"
"Yes, this is good timing. Just read it to me," Peter said nodding.
Angie looked at her tablet computer and read, "The other needs on the list are:
3.Centralize all grant-related information to improve tracking, project management and reporting.
4.Integrate data from all of our systems so we can measure and report on anything the organization is doing.
5.Improve service by consolidating member and donor data so staff has complete information from a single system.
6.Find ways to automate and streamline critical business processes to reduce costs, decrease errors and save time so we can achieve more services with the same number of staff.
7.Automate compliance with regulatory and external audit requirements (for example, SFAS 117).
“It sounds like enough to me. Thanks," acknowledged Peter. "I'm confident if we can meet these requirements then the solution will provide other helpful functionality too. I've got about 30 minutes before my next meeting. Unless you want me for something, I need to better understand the difference between cloud computing and on-premise solutions."
"Go for it. I'll catch up with you later," Angie replied as she turned and left Peter alone to do his research.
Because Esther and James would report on their recommendations in a month, Peter had the luxury of not having to research potential solutions. He just needed to understand the basic differences between the cloud and on-premise solutions so he could comprehend their conclusions. He found his answers quickly.
On-premise solutions have been around for decades. Basically this is where software and data shared by multiple people are loaded onto a server in the same building and accessed by individual computers ("clients"). This was why on-premise solutions were also called “client/server.” There were advantages and disadvantages to on-premise solutions. The advantages were:
1.The software applications were easier to maintain because they reside on a single server instead of dozens, hundreds or even thousands of client computers. Maintenance included repairing, upgrading, replacing and even relocating server hardware and software without affecting the client computers. (Cloud solutions share these benefits.)
2.The latest versions of data were also easy to access and update because it resided on the server(s).
3.Critical data was very secure on the server(s) if software and hardware was purchased specifically to protect the server whereas individual client computing devices such as desktop computers, laptops, and tablet computers lack this level of protection.
4.Servers did most of the calculation work so results were calculated quickly on the client workstations.
The key disadvantages of on-premise solutions were high cost, longer implementation times, slowing data access times as your number of users increase, and the cost to maintain the servers and software. Also, purchasing robust security can be very expensive for smaller organizations like Esther, James and Peter’s.
