Why is the future of business in the 'cloud'?
Not so long ago, many large companies categorically rejected cloud services as an unreliable place to store the most important company data or at least questioned their usefulness. Today, however, the situation has changed radically. Having appreciated the advantages of the 'cloud' during the pandemic years, the business world no longer asks whether data and programs will be stored in specialized data centers in the future. Now the only question is – when will the absolute majority of companies transition to the cloud?
This shift in attitude is clearly demonstrated by the users of the business management and accounting system Jumis. All Jumis Pro clients with over 250 employees use the accounting system in the cloud. In the group of companies employing 50 to 249 people, 85.7% have chosen it, while in the 10-49 employee group, the figure is 72.4%. Among small businesses with up to nine employees, 62.5% of clients operate this way. The most active users of cloud services are companies in the trade, real estate, agriculture, and accounting service sectors.
Convenience and Security
What motivates companies to choose cloud services? The first and most important argument is ease of use. This prompted 61% of all accounting program users to transition to the 'cloud.' The program and the company's data within it can be accessed from anywhere and on various devices, including smartphones. Access is quick, and data is always available as long as there is a device with an internet connection at hand.
Equally important is the convenience of not having to maintain one's own servers, as the service provider takes full care of the infrastructure. This is particularly significant for small and medium-sized businesses, for whom server maintenance and hiring IT specialists to oversee data storage are often too costly and hard to justify. Additionally, companies no longer need to constantly worry about data security and backups, which is becoming increasingly relevant in the face of active cyberattacks. Large data center IT teams are experienced and professional, having implemented certified security procedures and using appropriate technology, making them more effective at preventing attacks than a small company could manage on its own. No wonder 36% of accounting program users consider data security the most important advantage of cloud services.
The third most important argument for the 'cloud' is the ability to always use the latest versions of programs and receive updates automatically. This is highly valued by 28% of users. Updates are important not only for security reasons but also because they open up new usage possibilities, previously unavailable features, and broader compatibility with other programs.
More Opportunities in the Cloud
Analyzing Jumis user habits, it is evident that cloud solutions are most often chosen by entrepreneurs who work with digital documents daily. Those who have established electronic circulation of receipts, invoices, or bills of lading, or maintain program connections with banks or the State Revenue Service's EDS API. Cloud version users also actively utilize various automation tools in the Personnel module.
Accounting service providers also gladly use various other cloud service features – allowing clients to enter data into the Jumis system and its products themselves, for example, creating invoices and bills of lading, photographing and submitting receipts, filling out timesheets, and performing other tasks.
Another significant argument for companies to consider transitioning to cloud services is the general trend in the industry. Program developers are currently focusing on improving the cloud version of their products. The cloud environment is more advanced, new features are added faster, and improvements are made more quickly. The functionality created in the cloud version can also be used more conveniently and securely in other products.
All these developments increasingly highlight the dominant trend – the important programs for companies will reside in cloud services in the future. In the coming years, fewer programs will be installed on computers, and this practice will eventually cease entirely. Predictions indicate that by around 2025, all Latvian companies will use accounting programs as a cloud service. Therefore, the complete transition of other types of programs to the cloud could happen within the next 3-5 years.