Six Benefits of Private Cloud Computing
Cloud computing is gaining traction in the accounting industry. Your CPA firm can reap the benefits of cloud computing by either installing a private cloud or a public cloud. However, the benefits of a private cloud outweigh the advantages of a public cloud over on-premise IT solutions. A private solution will not only save you costs and enhance your data security, but also offer you control over the networks and other IT infrastructure. However, you may need an IT support team to help you manage your private cloud solution.
What Is a Private Cloud?
A private cloud is a setup operated solely for the benefit of a single firm. The cloud can be managed by an IT support team or by a firm’s employees. If you choose a private cloud solution, you can host it internally or externally. The private cloud provides you cloud’s efficiencies without having to share tenancy, hence giving you more control of over the resources.
A public cloud differs from the private cloud in the number of clients who can access a single network. In the public cloud arrangement, a third party provides infrastructure and network need for a cloud solution to multiple clients. Although the initial cost of a public cloud may be cheaper, your firm will have less control over the network and the cloud infrastructure.
Benefits of Private Cloud
The advantages of private cloud can be examined from two dimensions. A private plan may be compared to a public cloud or an on-premise IT solution. Here are five benefits of a private cloud.
Cloud Computing Helps You Attract Talent
Your CPA firm is either in Scranton or Wilkes-Barre. That means you are most likely to hire staff that lives and works within your locality. You may not have the best talent in your neighborhood, or rather, the best talent may have been taken by your competitors. However, the private cloud eliminates geographical boundaries by expanding the talent pool. With the high-speed connectivity of cloud computing, your workers can be located at any corner of the globe.
Reduces Storage Cost
Accounting firms process and store many high volumes of data on behalf of their clients, as well as act as a link between the government and the public. The data held by your CPA firms require you to invest a considerable amount of your revenue in data storage facilities. However, a private cloud provides you unlimited storage space in the cloud. The storage space helps you reduce the storage costs associated with on-premise storage facilities.
You may be tempted to think a public cloud would offer a cheaper storage option. However, some public clouds have fixed monthly or annual licenses. That means you have to pay the fixed cost regardless of whether you are on a high season or a low reason. However, a private plan allows you is billed on the number of users. You can reduce or increase the number of users, depending on your need. Since the private cloud gives you control of your storage needs, it will be cheaper than the public cloud in the long run.
Enhances Data Security
The accounting industry faces increased data security threats due to the sensitivity of data held by CPA firms. Data under the custody of your firm is at risk of being lost if your hardware is stolen or damaged. On-premise servers and storage facilities are also prone to cyberattacks that may compromise the integrity of the data. Cloud computing, however, offers your firm advanced security protocols that are either not available in on-premise arrangements or too expensive for small firms. In addition, your data is safe even when you lose your hardware since it is stored in the cloud.
Compared to a public cloud, data security is more advanced in the private cloud. While both the private and public cloud may require anti-malware and antivirus protection, a private cloud helps you take advantage of physical controls. The physical controls are especially more helpful when you get a single-tenant private cloud. A private cloud is also more secure than a public cloud since it uses a private and secure network link. The public cloud may be a little insecure due to the use of the public internet.
Cloud Computing Offers Flexibility of Your Workplace
High-speed connectivity, an added advantage of cloud computing over the on-premise setup. The high-speed connectivity means your workers can access their desktops from any location. The workers do not have to physically present themselves to the office. This kind of flexibility provides control over your office space. You can save rent expense by incorporating a hybrid workplace mode where part of your workforce works remotely while the others report to the physical premise.
Enhanced Communication Efficiency
Customer service is slowly moving away from phone and email solutions. Customers lean towards instant communication and solutions provided by digital platforms such as mobile applications. Cloud computing helps your firm to keep up with the trends in customer digital preferences by enhancing your firm’s ability to communicate and solve customer needs online. You do not need to travel to the office to solve a client’s emergency request since you can access your office from any location.
Although there may be no direct regulations discouraging the use of cloud computing in the accounting industry, the sensitivity of data held by CPA firms may make cloud computing less attractive. Accounting firms that work for health care insurance may be forced to abide by HIPAA to protect the integrity of patients’ data in their possession. Private cloud offers a solution to firms that need to highly protect the integrity of the data in their possession. Your firm enjoys the benefits of cloud computing within the regulatory framework of your clients.
We Can Help
If the private cloud sounds like the solution to your firm’s IT challenges, Tech42 LLC is here to walk you through the installation process. As an IT support provider, we will also help you manage the private cloud infrastructure and leave you with other aspects of running your CPA firm.