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Posts Tagged ‘perils of the cloud’

Recently, another reseller (and good friend) who uses a trusted third-party to host about a dozen of their accounting software clients mentioned that most of those clients’ systems were down — for the third time in about as many months, including two in the past couple of weeks.  Down as in, they-can’t-do-business down.

For various technical reasons, none of the clients could access the business management software they rely on to invoice clients, ship product or generally run their business.  For the third time.  The cause of failure differed each time, but really… does that matter?

I’ll tread cautiously here.  We’re not luddites.  Quite the opposite in fact.  After all, we provide sophisticated software systems and custom-tailored business process improvement services to a wide range of small and midsize manufacturers and distributors.  It’s all we do, and we’ve done it for nearly thirty years.  It’s mission critical stuff.  So we understand.

And we too believe that ultimately, hosted solutions ‘in the cloud’ are destined to be the future of most computing.  It will evolve, just like the electrical capabilities of a century ago evolved into the grid we know today.

But then, there’s you.  Our typical client, or prospective client, with a business to run.

When those dozen-plus clients of our friend went down, there was little anyone could do.  And mind you, among a growing array of cloud providers, the one they relied on in this case was a good one, trusted, with experience and lots of other clients.  Still, it happens.

I didn’t press for full details, but I know that some of those clients flat out lost business, could not invoice and/or could not ship.  It was lost business.  Maybe lost customers too, we don’t know.

But we’re all wise to remember a simple fact: the cloud is just some other guy’s computer.  And computers fail.  The fact that you have no idea where that guy’s computer is doesn’t make it any more helpful or secure.  Now, the reason we’ll all migrate there eventually is because multi-point, colocation redundancy with rapid fail-over switching will become commonplace.  Eventually.  (This still won’t solve the problem of giving you cheap software that’s customizable to your requirements – but that’s a subject for a whole other post on the limitations of multi-threading and multi-tenancy.)

But had those servers and software been located at the client’s own site, redundant backup and power generation to a known server in a nearby location (like, just down the hall…) could have prevented this.  Now imagine that you’re a manufacturer, and your shop-floor terminals that drive all your day’s production are now also dependent on that same cloud.  So when you’re down, you not only can’t sell, you can’t make, either.  That’s ‘down’ with an exclamation point.  And a lot of people on your payroll just standing around, waiting.

A 2017 survey of over 300 companies by Colorado’s Panorama Consulting, Inc. tellingly revealed that cloud adoption for business management software actually fell compared to last year, with a decreasing percentage of adopters year over year.

The best advice for those intrepid pioneering customers is the age old adage: caveat emptor.  You know what they used to say about pioneers being the ones up front with arrows in their backs.

Cloud is becoming a very profitable endeavor for its biggest providers.  The deck is stacked in favor of a never-ending stream of revenues to the providers, and the race is on to be the biggest and the best.  Just ask Amazon, Microsoft or Google.

All these companies know that in the long run they will make a lot more money from these recurring revenue streams than they were ever able to make, and sustain, selling software the old fashioned way.

Just remember who’s paying them all those extra revenues.

 

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