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Cloud Computing in Businesses – Insights from Financial Times Report

Despite much of the hype around cloud computing and its promised ability to transform businesses, an article in Financial Times, Cloud computing in businesses shows how these technologies are redefining tax services’ business models.  The report published today provides insights into how ADP Tax Services Division can now profitably sell tax services to medium-sized companies for the first time.

Accessing New Markets With a Standardized Business Model

Standardizing their tax services and delivering them over cloud-based architectures has allowed ADP to entire markets that were not accessible before.  Previously, ADP  relied on a professional services model based on billable hours.  While very profitable in larger businesses, the billable hours model could never scale into the medium business market ADP sees as critical to their growth.

The report also discusses how IBM is revamping its cloud strategy and includes analysis of cloud adoption by Frank Gens of International Data Corporation (IDC).

Bottom line: What’s insightful about this report is that it concentrates on which business processes can be streamlined first and made more effective using cloud technologies.

Link:  http://www.ft.com/cms/s/0/c87b9e88-e53c-11df-8e0d-00144feabdc0.html?ftcamp=rss

flickr attribution: http://www.flickr.com/photos/austinevan/1741532398/sizes/z/in/photostream/

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