Why your company's future is «in the cloud»

While many large companies in the recent past categorically rejected cloud services as an unreliable place to store critical corporate data, or at least questioned their utility, the landscape has changed radically today. Having appreciated the advantages of the cloud during the pandemic years, the business world no longer asks whether data and software will be stored in specialized data centers in the future. The only question now is: when will the vast majority of companies have migrated to the cloud?

This shift in sentiment is clearly illustrated by users of the Jumis business management and accounting system. Every single Jumis Pro client with over 250 employees uses the accounting system as a cloud service; among companies employing 50 to 249 people, 85.7% have chosen this option, while in the 10-49 employee group, the figure is 72.4%. In small businesses with up to nine paid 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 services sectors.

Convenience and Security

What prompts companies to favor cloud services? The first and most important argument is ease of use. This motivated 61% of all accounting software users to migrate to the cloud. The software and the company data within it can be accessed from anywhere and on various devices, including smartphones. Connection is fast, and data is always available as long as a device with an internet connection is at hand.

Equally important is the convenience of no longer 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 enterprises, for whom server maintenance and hiring IT specialists to oversee data storage represent excessive and often difficult-to-justify costs. Furthermore, companies must constantly ensure data security and backups themselves, which is becoming increasingly critical in the face of active cyberattacks. Large data center IT teams are experienced and professional; they have implemented certified security procedures and use appropriate technology, allowing them to prevent attacks more effectively than a small company could on its own. It is no coincidence that 36% of accounting software users consider data security to be the most important advantage of cloud services.

The third most important argument in favor of the cloud is the ability to always use the latest versions of software and receive automatic updates. This is most highly valued by 28% of users. Updates are not only important for security reasons but also unlock new usage possibilities, unprecedented features, and broader connectivity with other programs.

More Opportunities in the Cloud

An analysis of Jumis user habits shows that cloud solutions are most often chosen by businesses that work with digital documents on a daily basis. These are the companies that have established electronic workflows for receipts, waybills, or invoices, or that maintain software connections with banks or the State Revenue Service (VID) EDS API. Cloud version users are also much more active in utilizing various automation tools within the Personnel module.

Accounting service providers also readily utilize various other cloud service capabilities, allowing their clients to manage data themselves within the Jumis system and its products—for example, by creating invoices and waybills, photographing and submitting receipts, filling out timesheets, and performing other tasks.

Another significant argument for why companies should consider migrating to cloud services relates to the general industry trend. Software developers are currently focusing on improving the cloud versions of their products. This environment is more advanced, with new features added and improvements made more rapidly. Functionality developed in the cloud version can also be utilized much more conveniently and securely in other products.

All these developments increasingly highlight a dominant trend: the software essential to businesses will reside in cloud services in the future. In the coming years, fewer and fewer programs will be installed on computers, and in the near future, this practice will cease entirely. Forecasts indicate that by around 2025, all Latvian companies will be using accounting software as a cloud service. Consequently, the complete migration of other types of software to the cloud could also take place within the next 3–5 years.