Tag: cloud computing

  • Saying goodbye to the boxes of gold

    Saying goodbye to the boxes of gold

    “No-one is making money from cloud software, in the early days everyone made money from software,” bemoaned one of the panellists at last week’s CPA Technology, Accounting and Finance Forum.

    A good example of this is the US accounting software giant Intuit putting the 32 year old Quickbooks on to the market.

    Intuit was built on the back of Quickbooks but today the product today makes less than 6% of the company’s revenues and under 2% of the profits. Making matters worse is the old code base is clunky, proprietary and expensive to maintain.

    Apart from getting a captive – and almost certainly dwindling – client base, there doesn’t seem to be a lot to attract buyers for Quickbooks as a desktop based product in a market shifting to the cloud.

    The shifting business model hurts more than Intuit; the accountants, resellers and other service providers who were making a decent income from selling or supporting the box products have seen their margins evaporate.

    For users, both Intuit and the services providers moving away from the product risks leaving them and their data stranded, something every business should understand about the risks of proprietary formats.

    The shift though by Intuit should be a warning to small businesses that the days of box and inhouse software are numbered and running packages on servers and desktops will soon be for large organisations or niche applications.

    Almost every business is going to have to plan its move to the cloud, those who don’t are increasingly going to be left behind in a shifting market.

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  • Are small businesses too old and slow?

    Are small businesses too old and slow?

    Yesterday I hosted the second day of the CPA Australia Technology, Accounting and Finance Forum that looked at how the accounting profession is being affected by the changing technology landscape.

    There’s plenty to write about from the day and how the accounting profession is facing technological change which I’ll write up shortly but one theme from the day was striking – that older small businesses owners are struggling to deal with adopting new tech.

    Gavan Ord, the CPA’s policy advisor warns older practitioners are opening themselves to disruption and  the Australian business community is in general is at risk as older proprietors aren’t investing or embracing technology at a rate comparable to their overseas competitors.

    Older small business owners

    That older skew in small business operators is clear, in 2012 The Australian Bureau of Statistics found 57% of the nation’s proprietors are aged over 45 as opposed to 35% of the general population.

    Even more concerning is many of those small business owners expect to retire with a 2009 survey finding 81% were intending to retire within ten years – it would be interesting to see how those ambitions changed as the global financial crisis evolved.

    A risk to the broader economy

    This blog has flagged the risks of an aging small businesses community previously, but Gavan Ord’s point flags another risk – that older proprietors being reluctant to invest in new technology means a key segment of the Australian economy is unprepared for today’s wave of technological change.

    A key message from the CPA forum was that the shift to cloud computing is radically changing the business world as sophisticated data management, analytic and automation tools become easily available. Companies, and nations, that don’t take advantage of modern business tools risk being left behind in the 21st Century.

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  • Business and the workforce in an app driven world

    Business and the workforce in an app driven world

    One of the things we know about the future is the workplace will be very different. Just as the Personal Computer changed offices in the 1990s, the smartphone and tablet computer are changing today’s.

    Part of that change though is being driven by the change in generations. While this blog tries to avoid falling into the trap of generalising about different age cohorts – and contends the entire concept of baby boomers as an economic group is flawed – there are undoubtedly differences between the world of the PC generation of workers and that of the new mobile breed.

    The key difference is the idea that work devices are different to those at home. Those of us bought up with the idea that the office computers would be tightly locked workstations – in the 1990s we also had the quaint idea corporate desktops were generally more powerful than what we had at home – are now seeing that way of working being abandoned.

    For the next generation of office workers, accessing corporate resources through an app connected to a cloud service will be as normal as opening Windows NT to access the shared corporate drive was 15 years ago.

    Along with the technology and generational change driving businesses into the cloud-app computing world there’s also the needs of a much more fluid and mobile workforce. The shift to casualisation began well before PCs arrived on desktops but the process is accelerating as we see crowdsourcing and the ‘uberization’ of industries.

    Older workers will adapt as well, many came through the evolution of business computing from ‘green screen’ displays – if their businesses had any at all – through to the server based systems of recent years. For them the shift to smartphones might be troublesome for those with fading eyesight, but it won’t be the first change.

    For businesses this shift means they have to start planning for the mobile services that will change workforces and industries. The shift is already well underway – accounting software company Intuit estimates small businesses already use an average of 18 apps to run their business.

    We all have to start thinking about how these apps can be used to manage our staff and workforces.

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  • Businesses and the Windows 10 upgrade

    Businesses and the Windows 10 upgrade

    Last night Microsoft formally launched Windows 10, the company’s latest desktop operating system.

    A decade ago a new Microsoft operating system would have had people queuing at computer shops all night but today, in a world of cloud computing, what software runs on a computer has become less important to users.

    To entice users onto the new operating system, Microsoft are making the upgrade to Windows 10 free for the next year to those using the earlier versions 8 and 7 and many will have noticed the messages appearing on their computers over the past few weeks.

    Windows 10 is a good system, Microsoft has learned from the user unfriendly missteps of Windows 8 and added features that make the system smoother and takes advantage of the desktop computers’ power.

    Microsoft have also continued with their philosophy of providing a system that works on all sizes of devices from smartphones to large monitor PCs and Windows 10 adapts to the needs and use patterns of the different screens.

    That Windows 10 works on smartphones is less of a pressing matter given Microsoft’s attempts to crack the mobile market have been unsuccessfully and Windows phones languish with a tiny market share.

    For business users, the question is whether to take advantage of the upgrade. The short answer is maybe if use cloud based services in your company and wait if you have desktop applications that rely on Windows.

    Should you have applications that run on desktops and servers in your office then it’s essential to wait and see if your software runs properly on Windows 10. You’ll need to talk to the program’s supplier and your IT support person. Generally the advice is to wait a few months to iron out any bugs.

    If you’re using cloud services then the operating system running on your computer is largely irrelevant as long as you have a modern web browser. Microsoft’s new Edge web browser that’s built into Windows 10 so far appears to be a fast and capable piece of software that’s an improvement on the much maligned Internet Explorer that still lurks on the system for backwards compatibly reasons.

    Upgrading though isn’t without its risks, sometimes things go wrong and even the best planned transition doesn’t always work out and generally most cautious IT advisors will take the attitude “if it ain’t broke, don’t fix it.”

    One other potential trap is in hardware. It may be that some printers, cameras and other hardware doesn’t have the right drivers for the new system so while the software upgrade is free, you may end up having to stump up a few hundred dollars for new peripherals.

    For businesses users, if things ain’t broke and the existing computers are working well then the upgrade to Windows 10 is adding unnecessary complexity to the office and it’s probably best to hold off the transition until new computers are needed.

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  • Burying the DVD

    Burying the DVD

    Among the topics covered last night on the ABC Nightlife tech segment was the post-PC era as Windows 10 is launched to an indifferent marketplace.

    Some of the listeners didn’t take kindly to describing the current tech market as being the post PC world while others were distressed at the idea we’d be losing our DVD and CD players as software, games and music goes online.

    The main concern from listeners was they would be losing their disk collections. This is interesting as cloud computing, streaming and digital downloads marked the death knell of physical electronic media five years ago. It seems some people haven’t quite realised the model we’re moving to.

    For the music, games and software industries having cloud based online services or downloads brings many advantages – not least the promise of recurring revenue rather than the lumpy one off sales of physical box sales.

    Customers though are not so well served; while business users get the benefits of reduce up front capital costs, consumers at home are faced with paying a monthly fee to access their music or games collections.

    In the worst case, they can find themselves cut off should there be a change of policies or some arbitrary breach of conditions.

    Despite the downsides, the cloud model is now the way digital media is being distributed. The DVD an the CD is going the way of the vinyl record.

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