Special: The implementation of cloud computing

The terminology associated with the dark art of business technology can sometimes make finance directors feel as if they are back at school. Bamboozled by a series of buzzwords developed by the technical clique, they could be forgiven for tuning out when the chief information officer (CIO) begins bending their ear.

But the baffling jargon associated with IT obfuscates a business necessity; technology is changing the way business operates and the finance function is not immune to such transformation. What is more, the changes associated with cloud computing – the latest hyped-up killer app in technology – are potentially the most far-reaching yet.

Moving all your databases, systems and software onto an internet-based platform rather than running it through expensive hardware platforms, cloud computing breaks the traditional and costly model of IT purchasing and implementation. Rather than being tied to rigid licensing models for under-used technology, it allows the business to make use of an internet-enabled form of technology provision.

Through such an approach, businesses can flexibly purchase IT resources across a range of areas, and on-demand.

Andy Beale, technology director for architecture and services at Guardian News and Media (GNM) has led the implementation of one such invention, Google Apps Premier Edition, across the group’s central offices.

He says it encourages a more collaborative way of working and allows employees to use Google’s range of licence-free desktop applications, such as word processing, spreadsheets and video. Software is hosted and managed by Google, removing the need to install software or hardware onsite.

When it comes to the company’s finance department, though, Beale says there is limited use of Google Docs for the sharing of financial information, but the cloud is still pushing business transformation.

“What has changed is the way departments collaborate on budget information before it goes to finance,” Beale tells Financial Director. “Finance employees use Google Mail and Google Talk for communications. For larger departments with multiple cost centres, the ability to have many managers working on the same spreadsheet has made the budget process more efficient.”

Beale’s experiences suggest more workers could use cloud-based services to undertake collaborative forms of working and to increase productivity. As many as 82 percent of UK finance professionals already use web-based applications at work, according to online accounting software provider Aqilla. More than a third, meanwhile, use Her Majesty’s Revenue & Customs’ online tax returns function.

Nebulous concept
Scepticism about the potential benefits of cloud computing remains. Research from CIO Connect, a members’ group for CIOs, says that as many as 58 percent of technology heads it asked do not believe cloud computing is changing how IT is delivered.

The biggest inhibitor to the uptake of cloud services is security. Many IT heads believe cloud computing does not offer a secure environment for the type of applications required by the business, according to the Cloud Industry Forum.