Cloud computing advantages: reason no. 4, easy extendibility at low cost

The way we used to assemble applications went something like this:

• First we need an accounting engine. Today that’s table stakes for anything other than the person who sends out a dozen or so bills each year.
• Then we might add payroll. For a larger business we would consider HR administration
• Alongside we might also consider CRM
• If the business produces significant amounts of goods then MRP comes into the equation along with warehouse and logistics
• As you go up the food chain you start thinking about demand planning, talent management and a whole slew of peripheral apps.

And as the business goes through cycles of procurement the IT landscape becomes increasingly like a bowl of spaghetti because in truth, no-one buys all applications from a single provider. No-one. Anywhere. And then you have the nightmare of trying to make this pantomime horse work as though it was one. That’s why the integration business is big money, employing armies of developers and consultants.

The cloud provides a different way to do this but with all the advantages of best in class. What we now see are developers gravitating towards what they believe are or will be the most popular accounting applications, adding in those capabilities I mention above through web API integrations. So now you can easily extend with choices that were hard to find in the past. Check the KashFlow catalogue of partners as an example. There are many more. Even the mighty SAP has said that it will only develop around 10% of what it thinks will be needed functionality for its Business ByDesign solution.

Only today I heard from FinancialForce which said:

Excel spreadsheets are still the most widely used tool for managing sales commissions, however, they are error-prone and difficult to monitor and audit. Using a truly integrated end to end solution, sales and finance executives can design, implement, manage, audit and optimize sales compensation management programs easily and affordably. Using Salesforce CRM, FinancialForce Accounting and Xactly Express, Force.com customers can provide sales teams with accurate commission data and payments in line with customer and revenue goals and objectives.

The best bit? Salesforce.com, FinancialForce and Xactly stand the cost of integration as do all those who build new apps for integration to others. You eventually pay through the subscription but for the developer, integration is their burden. Now that bowl of spaghetti disappears. How good is that?

Inmage courtesy of Magnon’s Meanderings