In scenarios such as Single-family Offices, or where High Net Worth individuals are managing a significant personal portfolio with help simply from accounting staff, there is a need for an uncomplicated and user-friendly software system to deliver:
the recording of financial transactions,
basic performance evaluation and reporting,
simplified financial management tasks such as bank and cash management, and
the productions of accounts.
Not everyone has the resources to deliver on these functions, and perhaps would rather not implement an On-premise infrastructure and IT support system. If this sounds like you, Cloud-based software could be the answer you've been looking for.
Cloud-based computing is a form of Internet-based type of computing that allows individual users or organisations to make use of remotely-located, shared computer resources for the storing and processing of data in instances where problems are too intensive for any stand-alone machine.
Additionally, cloud computing enables SaaS (Software as a Service), a software licensing and delivery model that allows an organisation’s computers and devices to access software hosted on a remote server on-demand, without having to purchase software licenses. In cloud computing, access and data transmission is facilitated by an Internet connection and the infrastructure and software is provided by specialist cloud computing providers like Microsoft, Amazon or Google.
Within the sphere of Cloud-based computing, organisations can opt for a Public, or a Private Cloud model.
The Public Cloud is considered to be Cloud Computing in its purest form. One of the most widely quoted definitions of Cloud, by The National Institute of Science and Technology, explains the technical aspects:
“... a model for enabling convenient, on-demand network access to a shared pool of configurable computing resources... that can be rapidly provisioned and released with minimal management effort or service provider interaction. This model promotes availability and is composed of five essential characteristics (On-demand self-service, Broad network access, Resource pooling, Rapid elasticity, Measured Service); three service models (Cloud Software as a Service (SaaS), Cloud Platform as a Service (PaaS), Cloud Infrastructure as a Service (IaaS)); and, four deployment models (Private Cloud, Community Cloud, Public Cloud, Hybrid Cloud). Key enabling technologies include: fast wide-area networks, powerful, inexpensive server computers, and high-performance virtualisation for commodity hardware.”
Let’s cut through the jargon and break it down to the 4 key factors of Public Cloud:
Cloud providers who own the infrastructure deliver these services to the general public and large organisations alike and cater for almost any size budget, a big scoring point in scenarios such as a start-up wealth management company.
They do this by using virtualisation technology to split servers into many instances each with their own operating system and computing resources, even if the customer could not necessarily afford their own dedicated server. It’s this ability to create multiple computing instances that drives the benefits of Public Cloud:
Private Cloud is much the same as Public Cloud, with the key differentiator that the hardware and software deployed is dedicated to the sole use of a particular organisation. It still makes use of multiple virtual machines across a server and data storage centre, but in this instance it can be managed by the client or outsourced to a Cloud Computing provider. On top of that, it could be located on-premise or hosted within a third party’s data centre.
There are four common combinations that Private Cloud follows:
The first approach would be the solution to achieve optimal business results in order to capitalize on the key benefits of a move to the Cloud:
Cyber security is an important consideration when it comes to Cloud-based services, even more so for individuals who are storing highly sensitive data regarding their personal and financial interests.
The reality is that the level of sophistication in modern data centres far outweighs what most standalone organisations could afford to set up and maintain. From extreme physical security measures, uninterruptable power supplies, HVAC level air conditioning and advanced fire suppression systems, modern data centres leave no stone unturned in their pursuit of security and uptime.
The question that individuals and organisations have to ask themselves is whether they are able and willing to invest in such top of the range infrastructure on-premise and deliver these maintenance services internally. If not, commissioning a Cloud provider that specialises in industry-specific specifications can be more far more secure and less of a headache than an on-premise solution.
The Cloud vision is to make enterprise level technology available to any business big or small. By delegating the installation and maintenance of your financial system to a third party specialist you not only save on capital expenditure, but you gain the assurance that your technology is in the hands of specialists, which allows you to focus on your core business: managing and growing your wealth.
Would you like to know more about Cloud-based Computing options for Financial Accounting and Wealth Management software? Make sure you download our FREE eBook now!