Busting the cloud myths #2: TCO is the only benefit of cloud

Welcome to the 2nd in a 4-part series of busting the cloud myths with Cloud Lending Inc. In the 1st post we debunked the myth that the cloud is...

Snehal Fulzele 17th March 2014

Welcome to the 2nd in a 4-part series of busting the cloud myths with Cloud Lending Inc. In the 1st post we debunked the myth that the cloud is not secure, and today we will dispose the myth about total cost of ownership (TCO) being the only benefit of cloud computing.



Cloud myth: cloud is all about TCO



Yes, TCO is a benefit of moving to the cloud. From an investment perspective too, cloud computing gives you an edge by saving millions of dollars in initial capital investments (CAPEX) required to build an IT infrastructure that can support your business operations. But TCO is not the only benefit you’re your business should focus on. Beyond TCO, cloud can help your business be agile.



Agility is one of the most important capabilities of a modern business, especially if you are in the financial services industry. Deloitte’s study places agility as one of the 6 key focus areas for financial services industry in order to reposition for growth.  In our previous blog post we discussed how financial services industry can achieve agility in a regulated world.



Constellation Research’s study shows that digital disruption has demolished 52% of the Fortune 2000 companies since 2000. It is a signal to all the businesses that if you don’t match up to the market demands quickly, you will be out innovated by other market peers – direct competitors or by alternatives.



Typical customer onboarding at Cloud Lending Inc. is done in weeks depending on the customer’s business requirements. Our out-of-the-box solution can be deployed within 4 weeks into the client’s customer production instance. Compare this to months and years taken by the traditional financial services software providers. But agility in true sense is not just limited to quick onboarding, but also continuous innovation. A true agile system like ours would not only reduce time-to-market but also time-to-innovate.  This while providing you a cost advantage in terms of economy of scale.



For example, if you are a lending institution, with Cloud Lending Inc’s solutions, you can now release new loan products in minutes across all your branches. Such agility is also a great capability when it comes to dealing with changing regulations. For instance, one of our leading customers was able to respond to a regulatory change within a week. The customer admits that a similar change would have taken at least a month to implement in the previous on-premise solution.  Of course, the time may vary based on the regulatory requirement, but the point is that the time to respond to such changes is reduced by more than 90% with our solution. That is a capability every mid-large lending business would love to have!



Not just that. You can also scale your business operations considering both – your business strategy and needs. Gone are the days when your business had to trade-off between the two. With cloud’s pay per usage subscription pricing model, this can be a real game-changer for growing businesses as they can now convert CAPEX into OPEX.



Finally, cloud solutions can also reduce the time taken to integrate with other enterprise applications or 3rd party solutions. For example, Cloud Lending Inc’s solutions are 100% native to Saleforce1 platform. What that means is that your business can now choose from over 2000 enterprise applications on the AppExchange to optimize your enterprise’s crucial assets – employees, customers, suppliers and cash.



So, cloud is not only about TCO. In fact cloud is all about driving business innovation through agility and economy of scale.




Resources

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EVENTS

DLAI FinTech Conference – 2018

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NEFA Finance Summit 2018 (Conference)

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