Sage ERP MAS 90 Online Prospect Guide

Sage ERP MAS 90 Online (MAS Online), the cloud-based solution of Sage ERP MAS 90 and 200, a fully integrated business management solution. MAS Online is an ideal deployment option for businesses that have outgrown their small business accounting solution yet may not have the budget or staff to deploy an on-premise ERP solution. MAS Online offers seamless migration to on-premise ERP as business needs change, and it is supported by Sage’s expansive network of local business partners.

“SMBs need solutions that are easy to deploy and can adapt to their changing needs—making it important for vendors to offer various ERP deployment options,” said Laurie McCabe from SMB Group. “With Sage MAS 90 Online, SMBs don’t need to invest in IT infrastructure, and they can get up and running more quickly. The online version also offers predictable all-inclusive monthly pricing and anytime-anywhere access to their ERP solution.”

Ideal for an organization with a workforce distributed across multiple locations, MAS Online allows you to stay mobile and centralize key functions like accounting and operations on a standardized back-office solution. MAS Online enables you to:

• Get your system up and running quickly
• Make affordable monthly payments, rather than making an up-front capital investment.
• Enable your team to be mobile and more productive by using a powerful suite of modules ranging from financial and accounting, business intelligence, reporting, and operations, to distribution and light assembly.

If business circumstances change, MAS Online customers can easily and cost-effectively transition to the version of Sage ERP MAS 200 or 200 SQL or migrate on-premise. You are in control of your data and your system.

• Flexible online deployment of a suite of powerful ERP modules
• Reduces the need for an internal IT infrastructure
• On-demand deployment allows you to grow easily
• Smooth transition to on-premise if needed

I-Business Network has developed a comprehensive guide for companies considering cloud computing for their small to mid-sized business using the Sage ERP MAS Online technology. This guide is designed to assist companies in selecting the best solution for their current and future needs and includes:

• Migration to and from the cloud environment
• Differences in online vs. on-premise solutions
• Support and implementation options
• Comparison of Sage and partner hosted environments
• Pricing models and components of cost

To obtain your free copy of the report, call toll-free 678-627-0646 Ext. 230 or visit the I-BN website

Cloud Market Research – Why terminology makes a difference.

I-BN was recently asked to participate in a Business Software Study researching preferences for deploying new business software solutions on-premise (behind a “firewall”), in the Cloud, or some combination thereof.  These studies are of great interest to us, but the wording of the questions is always of almost equal interest.

The first anomaly of wording to strike was the seemingly odd definition of:

on-premise = behind a “firewall”

If the wording would have been, behind the corporate firewall, that would make better sense.  The wording behind “a” firewall almost assumes a cloud application is not behind a firewall.  Most industry experts would agree that both public and private clouds then to not only have “a firewall,” but that it would likely be better hardened than those of most small to mid-sized enterprises.

The next definition of Interest was Software as a Service or SaaS for short.

“SaaS” refers to the delivery and use of application or infrastructure software via a network. SaaS is typically sold, delivered and paid for using either a subscription model, or via a consumption-based “pay as you go” (PAYG) approach, or some combination of both. Other terms that are often used to describe the purchase and deployment of SaaS application and infrastructure solutions include “Cloud Computing” or “On Demand” computing.

This is actually one of the better definitions of SaaS.  It contains several key elements of SaaS:

• SaaS as a procurement model –  A key component of SaaS is that consumption nuance of Pay as You Go (See our post from 2010 – http://ibnblog.wordpress.com/2010/01/20/cloud-computing-consumption-nuance/).  Rather than locking down this element into a single definition, the research company is allowing flexibility in both software or infrastructure.
• SaaS as a deployment model - Because most SaaS is deployed in the cloud, customers do not have to purchase equipment and infrastructure licenses.

I-BN sees these two elements as separate and distinct as the nature of business operations can result in what some may consider conflicting answers.  For example:

 Your organization develops software for Facebook or mobile devices, you will likely need a very robust and dynamic computing environment for your operations.  The cloud makes perfect sense for operations.  With the speed of change in technology you may even want to subscribe or rent your development tools which are ever-changing.  The number of developers may vary widely with releases and with popularity of your applications.  Paying for consumption of those tools is also very attractive.

In that same organization the finance department needs new software for managing the business.  The number of users in the back office is small and relatively constant.  Stability and predictability are very important to the finance department and turnover is low.  Finance anticipates keeping the system for 10 years or longer by acquiring software from a reputable vendor with a long history of innovation and success in the market.   It may be more cost-effective to deploy this application in the cloud, and procure software licenses via a perpetual license than a subscription license.

Is one answer correct and one answer incorrect, or is this organization best served by a hybrid model?  At I-BN we have always believed that cloud computing and SaaS should be considered based upon the facts and circumstances of each company.  The pendulum may be swinging towards cloud, but we predict some hybrid (part cloud, part on-premise) will be the eventual winner for many organizations until 99.99% is achieved for connectivity as well as cloud uptime.

With clear definitions in the beginning of the survey we were very hopeful that the report we will eventually receive would provide clarity of marketplace perception.  However as we completed the survey we found questions asking for deployment preferences of:

• On Premise
• Hosted
• Hybrid
• Cloud

All of a sudden the word hosted crept in without definition.  Later in the survey Hybrid was defined (parenthetically) as “cloud with on-premise components.”  And then… to our dismay, the big question was phrased

“…please indicate when your company plans to purchase a Cloud or Software-as-a-Service based version in each of the following business software categories?”

If you are subscribing to a SaaS model, are you purchasing, procuring or renting?  If you are in a Hybrid model, should you answer this question as if you are using cloud?  If you have a SaaS solution with an on-premise POS or Bar coding component are you in the cloud or hybrid?

When definitions are unclear and opinions vary as to what is SaaS and when the buzzwords are acronyms (SaaS,IaaS, PaaS, etc.) results will have noise.  The old saying used to be, if you put 10 IT guys in a room and have them develop a network infrastructure for a hypothetical organization, you would get 10 different designs.  Today, if you ask 10 people to define cloud computing and SaaS, you may get 10 different definitions.

What Small Business Can Learn From SAP

SAP recently had their Field Kick Off Meeting (FKOM) for partners and sales personnel. At this annual event you get the usual motivational speeches and networking, but you also get a glimpse into the future of the company and why management is moving in that direction.

Key words repeated during the conference were:

• Innovation
• In-Memory
• Cloud
• Mobile

Innovation is change.  Some companies fear change while others embrace it.  The market and technology are changing under our feet.   People have said, “adapt of die” in the past, but this sentiment appears closer to the surface than ever before.  Gen Y has relationships online, and good friends they have never met.  Will sales be as personal as it used to be or will it be through community and social networking.  It appears that SAP is betting on both based upon the sheer number of sales people in the crowd and the topics of discussion.

Take away – People still buy from people that they know and like, but how they get to know and like them is changing.

All companies are continuously improving their software products.  SAP is trying to change the way they think about their products.  Instead of viewing ERP from a set of features and functions, they are looking at how ERP is used and how people work.   Instead of thinking of software to simply perform transactional record keeping, consider the questions that need to be answered to run your business better.  Now provide those answers to people who should be asking them in a proactive manner and you can transform your business and empower your employees.

Take Away – Think outside of the box and view transactions from 360 degrees and not just from a transactional perspective.

In Memory computing is about big data.  The amount of data being collected and analyzed by Fortune 500 companies is staggering and relational databases are not keeping up.  A new form of computational power is unleashed by the in memory computing technology.  SAP is taking their HANA technology for in-memory computing and utilizing it in all their products.  Even small businesses with a handful of employees will be able to use SAP Business One running on HANA in the not too distant future and Business Intelligence powered by HANA this year!  In today’s virtualized and global environment small business can power thousands of transactions per day building up larger databases than ever before through integrated e-commerce sites, EDI with vendors and automated work flows to field service technicians.  With HANA, complex reports that took 3 minutes to run take only 3 seconds.

Take Away - Technology advances will affect all segments of the market and they are coming even faster than ever!

Cloud computing is here and growing faster than ever.  As technology advances it makes using systems easier for end users, but often require new equipment and complex technology for the people who manage and maintain those systems.  Cloud computing removes the capital burden from organizations and eliminates the need to keep up with all the new-fangled technology like HANA.  More importantly Cloud Computing makes it easier to get the information employees, suppliers, and customers need in an efficient manner.  SAP is taking parts of its ByDesign SaaS product and offering them as point solutions.  Whether it is travel, expense reporting, or CRM you can subscribe to SAP Cloud solutions and have them seamlessly integrate with their on-premise solutions.  SAP is also making its traditional products like Business One more Cloud Ready and will offer subscription licenses for all of its products in 2012.

Take Away -  The cloud may not be for everybody, but SAP is betting that organizations can use the cloud is some part of their business to foster innovation.

Mobile devices are growing faster than any other type of end-user computing platform.  Smart phones, iPads, Adroid and Windows Tablets and even laptops with screens that rotate and flip to become tablets are becoming the favored form of computing device.  SAP now has mobile applications for all of its products and is making the mobile devices more and more functional.

Take Away – The mobile device is the platform your remote professionals, field service technicians and sales people will use to perform their daily functions today or in the not too distant future.  Mobile devices empower business owners to stay on top of operations anytime and anywhere.

SAP has been a leader in ERP for decades.  Understanding the trends and techniques driving this organization can give companies of all sizes insight into the future of technology in their own organization.  If you are going to catch the wave you need to get in position early and make sure it doesn’t come down hard on you!

Myths of the Cloud: CAPEX vs OPEX – What is the big deal?

In almost every article for Software as a Service and the Cloud a HUGE deal is made of the benefit of how new cloud applications convert capital expenditures to operating expenditures.  So what is the big deal?

A capital expenditure (CAPEX) is an investment in assets such as servers, software licensing and the implementation of the software.  If you buy the software, the implementation costs are includable in your asset as a necessary cost of preparing the asset for use.  Later enhancements, training, etc. are often expensed in the period as an operating expense (OPEX the cost of normal business operations).

For certain companies, mostly large companies, it is about budgets and balance sheets.

• If there is a freeze or a limit on capital expenditures (CAPEX) then a SaaS application is allowed where an investment is not.
• A company may have loan covenants and acquisition of a new system is often financed.  Although the new system adds an asset it also increases liabilities and can change the debt to equity ratio or affect loan covenants from lines of credit and other finance sources.

For most businesses these arguments are moot and miss the true economic questions:

1. Will the cloud/SaaS application provide a lower total operating cost?
2. Is there a long term commitment inherent in my cloud contract that may require balance sheet treatment?
3. Is there transfer of ownership which will require capitalization?

1. One clear benefit of the cloud is that you pay for the capacity you need instead of acquiring a fixed capacity in  a traditional model.  In addition, because of economies of scale, enhanced technology and other factors, a cloud provider should be able to provide the infrastructure at a lower cost of ownership (for comparable capability) than a small business can on its own.

Often the cloud provides new capabilities for remote access, integration and functionality that just isn’t available in entry level systems used by most small businesses.   In this manner the cloud can increase the top line further increasing the ROI or in effect offsetting the total cost of operation for the new systems.

Another factor that can lower the total cost of operations is the time to value.  Many cloud providers have developed rapid implementation programs and “pre-configured” elements to reduce implementation time and costs when compared to a traditional on-premise deployment.  I-BN’s “Start & Grow” program for Sage MAS 90/200 and SAP Business One have cut the deployment cost by as much as 75%  and has resulted in rapid deployments measured in days rather than weeks or months.  This again improves the ROI by reducing the upfront implementation costs and is much more salient than the CAPEX vs. OPEX argument.

2. Many SaaS applications require multi-year commitments and payment up front.  These multi-year commitments can also be financed.  In either case, you have created a balance sheet prepaid asset that needs to be amortized over the life of the commitment.  If financed, the associated liability must also be added to the balance sheet of the company.  This may not be a capital expenditure for company and may affect loan covenants differently than a traditional capital expenditure, but for most small businesses, who cares?

3. Companies like I-BN offer cloud services combined with software in a hybrid model.  Combining terms with cloud services our customers gain the benefits of an elastic cloud supported by leading technology and a team of experts with ownership of the business management software after the initial term.  In this type of arrangement ownership of the asset transfers to the company at the end of the term, and accordingly the asset should be recorded on the books of the company at the beginning of the contract term.

The concept of transfer of ownership is akin to purchasing versus leasing a car.  If you plan on a short lifespan for an asset, or  flipping a car so you are always driving new cars with the latest features, a subscription model makes sense.  If you plan to keep an ERP system for 10 years or longer, you must look at the total payments over the anticipated life and discount that cost using some expected cost of capital.  Often a subscription versus purchase analysis results in a 2-3 year break even on the licenses for purchase versus subscription.  For example, if a license costs $150 per month per user compared to $3,000 to purchase, without cost of capital in about 20-24 months the license would have been paid for.  Even if you factor in a 20-22% license maintenance fee, $600 per year compared to $1,800 per year adds up quickly in your ROI calculation.

So the bottom line is that CAPEX vs. OPEX should rarely be the deciding factor if a factor at all in systems selection.  A companies choice of business management platform should be based upon meeting your  business requirements, ease of use, and total cost of operations over the anticipated life of the software.

A Sucker Is Born Every Day

I was reading a great blog post by Nicole Laurier of Fisher Technology on the Juice Marketing blog, Software Sales: The Argument for Fixed Pricing (Ownership) or Monthly Subscription (Rental).  The article points out the effects of the current migration from perpetual licensing to subscription based licensing on Customers, Business Partners (VARs) and Software Developers.  The article makes some great points from each perspective:

• Customers gain predictability in cost and eliminates the large upfront costs for licenses
• VARs would lose their upfront commissions in favor or a long term revenue stream
• Software Developers gain increased contact with their customers  and can reduce the margins they pay their VARs

Nicole’s conclusions, even without a crystal ball, are that “the answer for customers, VARs, and software vendors would be to have some type of hybrid of both outright purchase and subscription options. In that way, businesses will have a choice of buying in the way they want.”  This is what I-BN has been advocating for years because the subscription pricing model tends not to be all inclusive.  Even if 100% of license, maintenance and upgrades are included, the subscription almost never includes training, configuration or business process redesign.

The real issue from a customer perspective is the method in which subscriptions are being sold, especially in the ERP market space.  Subscription based pricing is great for commodity services, short term projects, and businesses with cyclical businesses if subscriptions are variable.

• Credit card processing, tax calculation service, currency conversion, etc. are great examples of connected services which are commodities which fit a subscription model to the tee because you pay for consumption.
• Project based subscription software for construction, professional services, etc. are also perfect for subscriptions. Costs can be associated with and attributed to a project and turned off at its completion.
• Companies that have peak and valleys in usage can take advantage of subscriptions that are on a short time frame. Take for example a catalog company that has 100′s of call center people in the holiday season and a dozen during off peak times. A call center software paid per seat per month would be a perfect subscription application.

Regardless of whether the subscription is for a web native product like NetSuite or a web-enabled product like Sage ERP MAS 90 Online, there tends to be an annual or multi-year subscription.  There is no ability to scale down in off peak periods and ERP is not a commodity.  Changing ERP systems is hard work and disruptive to operations before all of the benefits are gained, so companies plan to keep ERP systems 10 years or longer.  Even if we can’t plan what technology or business will be like in 10 years, selecting an ERP package often hinges on the confidence that the software developer will be in business for the long haul and can keep up with new technology and business practices.

Companies like Sage, Microsoft and SAP have all done the math and calculated how much extra money they will make with subscription pricing (as part of their price calculations) based upon current and anticipated usage patterns. Customers will as well. Therefore, either subscription pricing will not capture a large ERP  market share or software vendors will adjust the policies to balance increases in revenue to the value provided by the lower up-front costs (similar to leasing).

That is unless you think, a sucker is born every day!

ASUG Business One Summit in Review

Last week the Americas SAP User Group (ASUG) held the second annual Business One Summit at the Lake Lanier Islands Resort just outside Atlanta.  This event, sponsored by ASUG and not SAP,  is designed for SAP Business One  users.  SAP supported the event by sending leading executives, the head of Business One development and several members of his team, plus several field representatives who performed hands on training on several aspects of the product.

In just its second year attendance seemed to grow to over 500 attendees and the expanded session offering included a wider variety of topics and speakers.  Some highlights of the event included:

• Keynote session by Conrad Mandela VP for SAP SME in North America
• Keynote session by Andreas Wolfinger Head of Business One Development Worldwide
• Business One Mobility Shootout – demonstrations of the Mobile device capabilities for B1
• Technical sessions on Crystal Dashboard Design, Business One Integration Framework and B1 Mobility setup by Eddie Neveux and Dan Love from SAP
• What’s new and What’s coming in SAP B1 sessions by Leah Divir, Idit Fydman-Saguey and Andreas Wolfinger from SAP
• Customer Experience Sessions such as the one led by Shawna DeBoer of Durks Farm Service

In addition to these great educational sessions, there were a number of Solution Provider sessions on industry specific topics or general business topics such as I-BN’s session “What Is the Cloud and When Should I Use It?  Solution providers also hosted several evening receptions and the Solution Fair where over 50 companies were able to demonstrate their products and services.  Several solution partners also sponsored a golf outing and nature hike.  Thanks to the generous sponsorship the entire event was FREE and a good time and tremendous learning was had by all!

I-Business Network is a member of ASUG and a sponsor of the Business One Summit.  I-BN also provided the technical infrastructure for the hands on training.

Myopic Vision: Open Source ERP = Free

I ran across one of those product evangelists espousing the virtues of open source ERP software. There are many potential value propositions that I buy in open source:

• A community of programmers can develop quickly and cost effectively
• Multi-platform and LAMP platform support can lower license costs and provide flexibility
• Eliminating the up front and ongoing license costs can save money

The operative word in the last bullet point is CAN.   The cost of an ERP system is made up of many factors; however, one of the least significant is the upfront license costs.  Don’t stop reading because a license may range from $1,000-$3,000 or more per user in a traditional implementation or $100-$250 per user per month or more in SaaS,  but think of the costs of an ERP implementation and the ongoing costs and benefits.

Typically, in traditional software implementations, the license cost is less than 1/2 or of the initial costs.  Don’t just think of the cost of an implementation partner and your internal staff costs, but consider the disruption of your business processes due to change, and the time it takes of leadership to effect the desired behavior from the staff.  Even in a SaaS world, if you compare the first year or two subscription to the cost of change it will pale if you consider all the soft costs.  In many cases, open source software needs to be supported by a programmer who customizes the solution to your needs and is often required to make changes to code when system capabilities are not available in the “free” version.  In either case, the efficiency and effectiveness of the implementation will determine the total cost of your initial outlay for the system.

Now think of why you are changing systems in the first place.  Your business processes need improvement, redesign or radical overhaul to deal with the new economy, competitive pressures, or to become a leader in your industry.  The benefits of the ERP system are driven by the capabilities of the system and its ability to adapt to your business and changing conditions.  Typically the “free” version of an Open Source ERP lack capabilities, support and require customization to meet and/or adapt your business requirements.   Custom development is always more expensive up front, and long term, if an out of the box or configurable solution is available.

There are many Open Source ERP systems which are not free or have an upgrade to a “supported” version.  In those cases, you typically pay for a support contract or a license fee similar to a SaaS or traditional software package.  Open Source ERP systems are becoming ever more functional and will soon have a broader appeal as they achieve parity with established traditionally developed packages.  These packages are never free.

You don’t buy a new system based upon what it can do for you in the first 3 or 6 months,  so don’t evaluate packages based upon initial costs.

ASUG Business One Summit

SAP Business One has been a fast growing software platform in the US Market since 2003.  Last year Business One reached a milestone when the Americas SAP User Group (ASUG) held the first SAP Business One Summit in Portland Oregon.   This free event is organized by and is for users who want to meet with other users, learn from SAP and leading partners and see what is coming down the road from SAP.

Carl Lewis who has spearheaded the Business One group within ASUG recently posted The TOP Five Reasons To Attend The ASUG Business One Summit.  In bullet form Carl identified:

1. Education
2. Networking
3. Influence
4. Unfolding the Future
5. Cost Effectiveness

Ever since Business One became a single code base SAP has been enhancing the features and functions faster than ever.  New user interface, reporting tools and mobile applications also make the product ever easier to use.  Now more than ever, users of Business One need to keep up with SAP to get the most out of their software investment.   Over 20 SAP executives will be in attendance including the leaders of the development group.

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There will also be many leading Solution Providers like I-BN exhibiting at ASUG.  In the past extensions were plentiful in the Business One world and depending upon your perspective, these extensions enhanced or over-complicated the solution.  Today, the quality and quantity of extensions has increased, but the need for many has been eliminated through the enhancements made by SAP or through horizontal extensions like Task Centre, B1UP, Country Package or the Advanced Productivity Pack.  This is a great opportunity for customers to network and learn what has worked, and how to streamline their operations.

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Come and visit I-BN at the solutions fair and we will be happy to share our thoughts!

Register Today and attend the ASUG Business One Summit.

Software Licensing in a New Era

As technology changes so does software licensing.  Unfortunately licensing rules don’t seem to become any easier or less onerous for the end user.

When virtualization took hold in the marketplace, Microsoft realized it needed to change its rules of engagement or it would be losing money.  Post Windows XP Microsoft put many new restrictions on virtualized desktops and created new VDA licensing.  The same is true with HyperV and the virtual computer operating systems being licensed by virtual CPU or cores rather than physical CPUs.  VM Ware is going even further with virtual RAM licensing costs.

Its not just operating systems that change their licensing methods.  Several years ago Microsoft came out with “Business Ready” licensing that offered role based licensing.  Theoretically this is to reduce license costs so people only pay for the functionality they need.  However, this change was a radical departure from concurrent user licensing to named user licensing.  Others including SAP and Sage also offer named user licensing models although Sage still has its complex user and module matrix for some of its products (although not as bad as the Navision module and granule used to be).

Most perpetual licensed software that is”beyond the shelf” often comes with the nagging “license maintenance” costs which typically range from 17-25% of original purchase price.  So every 4-5 years you end up repurchasing the license you thought you owned.  In most cases you do own the version you purchased, but every 2-3 years that version becomes obsolete and you can no longer get support from the vendor.  So the maintenance fees allow you to upgrade to newer versions with better technology and feature sets (which hopefully translates into business efficiency).

So what about open source and SaaS?

Open source products typically come in two flavors, the community edition or a paid supported edition.  The community edition is typically downloadable for free, but comes as is.  For packages like Sugar, Magento or Joomla, you can get a very stable version of software and then can pay a service provider for implementation assistance and support.  Seems free, but unless you want to spend the time and have the capability to support the products on your own, you are still paying “maintenance” in a different form.  Even if you support it yourself, isn’t your time worth something?

Almost all of these products have supported versions that offer a higher level of functionality and with that functionality comes a price.  You also can buy support contracts for commercial editions or subscriptions to the software (SaaS), so what you have done is shifted the timing of payments (sometimes, as some SaaS providers require upfront payment for the term of the subscription) and the names of the license fees.

One advantage of a SaaS model or using a Cloud Service provider like I-BN is the bundling of license costs.  When I-BN hosts SAage MAS 90 or SAP Business One, it bundles in all of the server, database, MS Office, Citrix and other license costs into a single predictable payment.  With a SaaS or subscription based hosting pricing model, the underlying ERP software and implementation costs can also be bundled into the monthly fee.

The key when evaluating the cost of software, whether on premise or in the cloud, is the total cost of operation over the minimum anticipated life of that software.  Software and computing resources used for a short period of time are ideal for cloud based subscription pricing.  Software with a longer “shelf-life” needs to be evaluated with annual maintenance, upgrade, and other costs factored in.   Subscription pricing eliminates much of the calculation effort if the service provider offers a comprehensive package.  It is critical for you to look at the contract terms and service level agreement to determine if all licensing and services are included.

The bottom line is that software companies produce software to make money.  That investment in research, development, support and maintenance is not trivial and software companies recover those costs over time via licensing, subscription or support agreements.  Cloud based software is no different, but adds the server maintenance and licensing costs to the bundle.  The names may be changing, but the need to support the investment in software development has not changed.

The New Cloud and Your Old Computers: A Perfect Match

The legacy computer system at your small- to mid-sized business is old. The cloud and web-based computing are new. Will the two make nice together?

For many small businesses considering a move to cloud computing, the question is a paradox that has stymied the transition.  It’s also a myth begging debunking. As contradictory as it may seem, older computers are ready-made for 21^st Century computing solutions.

Cloud-based computing has taken its place as the hosted delivery model for many key business applications, from accounting and payroll software via such solutions as Sage MAS 90 and SAP Business One as well as the web native SaaS solutions.

The Software-as-a-Service (SAAS) model was created to deliver applications regardless of the processing speed or location of the computer. For a business owner, the cloud requires no new investments in the latest desktop systems or laptops. Moreover, solutions can be customized to meet any client’s specific needs, as well as the capabilities or perceived limitations of their computing systems.

All the business needs is a broadband Internet connection. Desktop computers become “dumb” terminals, like hardware deployed in many businesses. All software is served up on an as-needed basis via the Internet and Web browser. Businesses have been known to dust off even older computers to act as email servers; most Web-based mail consumes so little processing power and memory that even pre-XP OS installations generally can handle with relative ease.

Some business applications often perform better and more reliably when delivered as a web-based solution, as opposed to the software being installed on a local computer. No hard drive space is required, and far less RAM and processing power is needed to run an application accessed as needed over the Internet.

Given that older systems might be more susceptible to component or software failure, hosted applications also ensure data is backed up, protected and secure.

Contact I-BN for a free consultation or webinar to help you better understand how your current computing installation will work with the cloud. No paradox here. Just ready-made solutions.