Cloud-Hosted Solutions

One of the most popular trends in business today is moving from on-premise and maintaining applications on internal servers to cloud-based applications. Two common reasons for this are reductions in internal costs and a reduced IT role in new solution implementation. When considering cloud-hosted solutions, remember that there are crucial differences in application delivery in a cloud environment. Your organization should also weigh the pros and cons of any new solution presented.

What are cloud-hosted solutions?

Cloud-based solutions are very popular and becoming even more so every day. Estimates are that companies will continue to drive double-digit growth when adopting cloud-based solutions well into the future. They are a great way to have solutions without needing on-premise technology for everything.

The benefits of cloud-based solutions, both financial and operational, are well documented and fairly well established at this point. Solutions like vendor portals, vendor onboarding, accounts payable automation, dynamic discounting, workflow management, data capture, and many other applications utilize the cloud to deliver functionality.

What is not yet common knowledge among users and buyers of cloud-based solutions is the different types of cloud infrastructures and implementations that could impact the availability, performance, and security of your application and data.

Public Clouds (Multi-Tenant) Vs. Private Clouds (Single-Tenant)

One of the considerations when selecting a cloud delivery model is whether your application is housed in a public or private cloud. The level of security sensitivity or customization required for your specific business or process will significantly influence your decision. For example, CRM applications use a public cloud environment due to the number of users across different organizations. On the other hand, some financial applications or other applications that require a higher level of security and/or customization to reflect your specific business and process may work better in a private cloud, in a single-tenant configuration.

Of course, two factors that will weigh heavily on the decision are performance and cost. Multi-tenant cloud-hosted applications often cost less due to shared infrastructure costs across multiple users. However, this limits your ability to drive greater performance. While a single-tenant cloud-hosted solution may be more expensive, you have more control over the performance. Additionally, you can add more “horsepower” and customize the application to fit your specific business processes.

Multi-Tenant

In a multi-tenant, public cloud-based solution, applications are designed for use by multiple users from different companies. While each company’s data remains private, multiple users share the application functionality. The benefit of this approach is the price. Multi-tenant solutions are less expensive for the application provider and users since each user shares the same base application. The downside for many is that multi-tenancy limits functionality, and users must either redesign their process to fit the application or pay for expensive and risky customizations.

Single-Tenant

Single-tenancy can provide some of the benefits of a private and public cloud. The cloud service provider maintains the infrastructure, while the solution provider maintains the application. Multiple applications may still be housed on shared servers but the individual applications are not shared among multiple companies.  The benefit of single-tenancy is the ability to customize your application to fit your process quickly and inexpensively while still taking advantage of the cost benefits of cloud solutions. 

The Hybrid Approach

Let’s introduce another layer to consider when looking at cloud-hosted delivery. You can enjoy the benefits of a private cloud at lower price points with a hybrid approach. Although your application won’t have exclusive server access like in a private cloud, it will operate within isolated clusters on shared servers. This ensures your data remains private while still benefiting from cost-sharing with other applications.

Learn More

In conclusion, cloud-hosted solutions have revolutionized the way businesses operate, offering a scalable, cost-effective, and flexible approach to software delivery. By leveraging the power of cloud computing, organizations can streamline their operations, enhance collaboration, and improve overall efficiency. As cloud technology continues to evolve, it is essential for businesses to embrace cloud-hosted solutions to stay competitive in the digital age.

Posts you might like:

How to Make the Vendor Onboarding Process a Little Easier

In the financial back office, bringing on a new supplier is rarely a simple admin task. In practice, vendor onboarding is the precise control point where data quality, compliance integrity, and fraud prevention are established for the rest of a commercial...

How to Improve Data Quality and Security in Financial Operations

Data is both your most valuable asset and your greatest vulnerability in the financial back office. Every invoice processed, vendor onboarded, and payment executed relies on a continuous stream of financial data. This is why it is key to have good data quality and...

How to Decrease Administrative Work in the Back Office

If your back-office team spends 80% of their time chasing missing invoices and fixing typos, you're both losing money on operational inefficiencies and also burning out your talent while missing out on strategic insights. Reducing administrative work in the financial...

The Importance of Considering All Back Office Stakeholders

When a leadership team decides to upgrade its back-office technology, the focus is usually on efficiency metrics, ROI, and cost reduction. But there's a difference between choosing software that looks great during a demo and choosing software that actually succeeds in...

Vendor Portal Technology FAQs

Mid-market companies and large enterprises alike face increasing pressure to scale their supply chains while driving down operational costs. This has made the financial back office primary target for digital transformation. At the center of this modernization effort...

How IDP Transforms the Financial Back Office

In the financial sector, efficiency is an incredibly competitive metric. When financial institutions look at Intelligent Document Processing or IDP, they often view it through a narrow lens: How much time will this save us on invoice processing? How much faster can we...

How to Build a Strong AP Approvals Process

What is an AP approvals process? An Accounts Payable approvals process is a rules-based workflow that determines how a vendor invoice is reviewed, verified, and finally authorized for payment. Building an effective AP approval workflow for your organization requires...

Bolt-on Software Integration vs. Complete System Replacement

What is the difference between a bolt-on software integration and a complete system replacement? A bolt-on is technology that layers directly onto an existing ERP system to enhance its capabilities without altering its core database. Conversely, a complete system...

AP Automation Implementation Challenges

The promise of accounts payable automation is undeniable: lower processing costs, fewer manual errors, faster cycle times, and the ability to turn a traditional cost center into a strategic, data-driven asset. However, deciding to automate is only the first step. The...

7 Things to Look for in an Accounts Payable Solution

Choosing the right accounts payable automation solution is key to the success of the department. As the global AP automation market is projected to reach $6.57 billion this year, organizations are now doing more than just using digital invoices. Now, it's a race...