By now, just about everyone has heard about a cloud software solution of some kind. While it is certainly generating a lot of buzz, a contractor may not know how to tell if “the cloud” is right for its business. It helps to understand how cloud applications work compared to traditional on-premise software, and to consider the pros and cons of each. Both of these can be great for contractors; it just takes a little due diligence to find out which one best fits the way an organization works.
Getting Your Head in the Cloud
The idea of the “cloud” has been around for years, but cloud computing really started to become popular in 2010, and it is now a readily available option for all industries. Technically speaking, there are two types of “cloud” programs. The first is true cloud-hosted software, written specifically to run from the web. The second is a web-based application, often referred to as “software as a service” (SaaS), which allows a user to access the program via the web, but is hosted on a server maintained by the provider. Both of these cloud choices allow the user to easily access software via the Internet and can offer different advantages based on the users’ specific needs. Whether one chooses a true cloud or SaaS application, cloud-based programs are definitely more than a trend and deserve attention—especially from the construction industry.
As contractors begin evaluating new software options, they’ll have to make the decision between cloud and on-premise solutions. Here are a few things to consider in the process.
Cost
When it comes to cloud applications, the start-up cost is significantly lower than on-premise applications. There is usually an initial set up fee followed by a monthly subscription fee, which often includes maintenance. Basically, contractors are paying to access the application instead of owning it.
On the other hand, on-premise applications require good hardware and a strong IT infrastructure to host and maintain the software, increasing initial costs if these items aren’t already in place. If the hardware and infrastructure are already in place, however, on-premise software is something to consider if full ownership is a priority.
Reliability
The cloud is still a fairly new technology and its use is still evolving on a daily basis. Things that contractors may have done routinely in the past, like printing documents, may be completed a little bit differently when using cloud applications.
On-premise software has been around for quite some time and it’s tried and true. While both deployment methods are great solutions, the cloud may require a little more patience.
Data Hosting
Many contractors lean toward on-premise software because their data is hosted onsite, which brings a certain peace of mind. However, it’s still recommended that contractors back up their data and store copies offsite.
With the cloud, data is hosted and backed up by the service provider, so contractors don’t have to worry about things like backups. The trade-off, though, is that contractors have to accept that their data is being stored elsewhere.
Maintenance
When using a cloud application, contractors don’t have to worry about backing up their data or installing updates, as it is all done by the provider at the hosting site. Contractors can be assured that their data is safe and that they’re using the latest version of the software. However, with cloud applications, contractors must rely on their service provider when it comes to updates and backups.
With on-premise software, this responsibility falls on the shoulders of the contractor. This responsibility means it can schedule maintenance during times that are convenient for the company.
IT Requirements
When a contractor chooses an on-premise software solution, it is imperative that it has IT support, whether that comes from a dedicated onsite IT department or is outsourced to another company. With the cloud, however, there is reliance on IT professionals because there is no need for heavy-duty hardware or a sophisticated infrastructure.
Convenience and Mobility
One of the best features of cloud applications is that they are incredibly convenient to access anytime, from anywhere. To access their data, contractors only need the Internet and an Internet-enabled device. This allows them to log in from jobsites and various geographic locations to update their jobs, which, in turn, gives project managers the ability to access real-time data. The downfall to this is if a contractor cannot find an Internet connection, there is no way to access the application or the data.
On-premise software, on the other hand, is only accessible from machines on which it is installed. This limits where contractors can see their data, but they don’t need an Internet connection to make the application work.
Speed
One of the most common questions from contractors is about the speed difference between on-premise and cloud applications. Depending on what type of Internet connection is being used to access a cloud application, speed may be an issue.
Generally, cable, DSL and fiber Internet connections will offer the fastest speed and best performance. If software is installed directly on computers in the office, contractors have to worry less about the speed of their application and how the Internet will affect it.
Ownership and Control
Contractors that purchase on-premise software own that system indefinitely. They have complete control over the system, including customization, updates and other maintenance items. Additionally, they can access it whenever they need to and can schedule their own maintenance and downtime.
When using a cloud application, contractors have no control over downtime. Whether it’s because of scheduled maintenance or a problem on the provider’s end, downtime means that contractors cannot access their data or do their work.
Making the Right Choice
Today’s software purchase goes beyond just features and functions. Deployment options have become a huge factor in the search for software solutions. The cloud can be useful for smaller contractors that want sophisticated software, or for contractors that need to access data from multiple locations.
On-premise software can be a great choice for the contractor that already has hardware and an IT infrastructure in place. The most important thing is for contractors to do their homework and research all of their options carefully to determine which solution is best for their business. The right choice will give a contractor the ability to focus more on their jobs and growing their business.
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