E-Source Says
The Entrepreneur’s Source Reviews How Technology Can Help Franchises
An increasing number of businesses, big and small, are replacing their old computer systems with cloud technology. A survey by McKinsey & Company found that 63 percent of business professionals agreed that adopting cloud technology yields a more agile and responsible business. The Entrepreneur’s Source reviews the advantages and disadvantages of franchises and small businesses utilizing the cloud.
What is the Cloud?
According to PC Magazine, instead of franchises storing and accessing their files, data and programs on a hard drive or on premise server, the cloud allows these documents to be stored in a third party hosting facility that allows individuals to access the information stored there through a secured Internet connection. Companies that are utilizing the cloud correctly access their data and programs via the internet, synchronizing all files this way. This computing technology allows for the elimination of expensive data centers and their supporting IT personnel.
With any form of technology, there are less sophisticated and more sophisticated types of the cloud. These variations run in the form of private-cloud and public-cloud environments. In a public-cloud environment, the cloud is shared with multiple clients or residents. Companies that utilize this type of cloud environment are paying for a slice of the server. Public clouds typically use a pay-as-you go model with no contracts and are self-managed by the business, making this an ideal technology for a small business or franchise to adopt.
Contrarily, if a business buys into a private-cloud environment, then they are the single tenant on the network. This cloud technology allows for heightened security because there is less risk of other tenants “breaking in” and higher customizability. This type of cloud is typically utilized by mid-to-large size companies.
The Advantages of the Cloud
Adopting cloud technologies can save franchise brands countless dollars, time and energy. Replacing common platforms with cloud technology can enable 30 to 40 percent savings for a business. When looking at a small business or franchise, this could allow for substantial money to be put back into the business. Small businesses and franchises are given access to advanced technology without the need of hiring a technology worker or IT consultant when utilizing cloud technology – saving the business money.
Franchisees can utilize the cloud from laptops or smartphones, allowing for easy accessibility and convenience to the franchisee. Cloud technology allows franchisees to work from just about anywhere with Internet access. Whether franchisees are vacationing through Europe, at their franchise establishment or are in the comfort of their own home, as long as they have Internet access, then they will be able to access the cloud.
Tom Lindberg, owner and founder of Sir Grout Franchise, shared on his appearance on Franchise Friday that he adopted the cloud technology from the inception of his franchise.
“It’s totally transformational for us,” he said. We can log in anywhere from any device anywhere in the world and have a complete handle on our business. I can, basically, run my business on my iPhone because I can connect to the cloud whenever I need to.”
Another advantage of the cloud is that it allows franchisees to look at the other franchises within their brand and compare their store with the others.
“I can follow and watch all of our locations and spot trends and analyze how their business is doing and I can, you know, contact them before they have a problem and want to contact me,” Tom said. “So, we have a very proactive way where we can research our locations and their customers and how they’re performing. The very foundation of our business is our software that we use.
The Disadvantages of the Cloud
Although cloud technology is generally a safe option, there is always a risk of data loss and privacy breaches. A private-cloud environment typically lends itself to less of a security risk because there is only one tenant on the network. Using a public-cloud environment, a business may be put at risk if untrustworthy and unethical individuals own other segments of their cloud and try to hack into other owners’ sections.
Because the cloud relies upon the Internet to access files, if a business’s Internet is down, then a business won’t be able to access its files and data. If a business suffers from slow Internet speeds or spotty service, then cloud computing may not be the best solution.