Online accounting system Versus Window accounting software

Online accounting system Versus Window accounting software

by KOK CHOON KOW

While conventional window accounting software has dominated computing world for the last 20 years, online accounting system has be spreading rapidly with the introduction of ASP (Application Service Provider) or SaaS (Software as a service).


The best part of SaaS is the cross-platform and information availability anytime anywhere. To ease of deployment and maintenance has drive online accounting to spread very fast, with the introduction of Web 2.0 even bring this further.


The biggest challenge of all time for SaaS will be security and privacy concern. Conventional customer has been used to stored and backup their data by themselves. To convince / introduce online accounting will post the question of data security. To provide such promise and reduce the customer risk of data lost, vendor must provides some backup mechanism and allow customer to download their own backup data. If online accounting vendor can provides such mechanism, we can see the domination of online accounting system (or SaaS) in the next 10 years.


The biggest advantages for SaaS compared to conventional software is the Rental business modal; Instead of owning the software, the user now rent the software as service, enjoying the newest feature at all time while maintaining the lowest cost of ownership. Online vendor must have a very targeted and flexible plan for pricing strategy, as there is a breakeven point where company will buy the system rather than rent it when they have lots of user!


Conventional accounting system must prepare to migrate to SaaS model before online vendor started to solve and convince the user about security and backup risk.

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