July 23, 2018, 2:04 am
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More PH companies are going to the Cloud. Here’s why.

MORE than 18 years ago, when Larry Ellison and Evan Goldberg founded NetSuite, there was this inescapable sense that the Internet would change everything. We have seen this happen in our lifetime, and
today we are at the forefront of the ultimate expression of the Internet’s disruptive nature: the cloud. Cloud-based solutions are revolutionizing a lot of things, not least of all the economy, as the adoption of
cloud computing continues to grow among Philippine businesses.

Majority of businesses that are open to adopting the cloud come from retail, wholesale distribution, services and non-profit. These have generally used new technologies to differentiate themselves in largely
competitive markets, or to optimize their operations, or support their growth. 

One perfect example is Explorer Freight, a Philippine-based company trucking and Customs brokerage service that has been in business for nearly 30 years. As NetSuite aids the organization in preparing for
next stage growth, it becomes evident that cloud computing can help a company achieve end-to-end workflow-driven efficiency across its core business processes, including financials, supply chain, customer
relationship management (CRM) and warehousing operations.

It also helps that the country has scored highly in freedom of information and protection of privacy—critical factors in cloud adoption. The latest report published by the Asia Cloud Computing Association,
shows that the Philippines has climbed up a slot to land in 9th place in the “Cloud Readiness Index,” effectively overtaking Thailand.

It doesn’t mean though, that cloud computing is only appropriate for specific industries. Basically any company, in any industry that seeks to differentiate itself and make the most use of its resources would be
impacted by cloud-based technologies. For small companies it allows them access the latest technologies with limited resources. For big companies, it allows them to be as agile as their smaller competitors
as markets change and become more competitive.

Here are six reasons why more Philippine companies are moving their business to the cloud:

Access the cloud anytime, anywhere. Cloud computing is “always on,” making it easy to grow your business and support remote workers and locations, or support a highly mobile sales or service team,
because people can access the cloud any time, day or night, from any browser, desktop or mobile device around the globe, 24x7. Imagine a Cebuano entrepreneur running his or her business while visiting
customers in Manila, vacationing in Bohol, or just lounging by the beach in Boracay.

Pay only for what you need. Customers pay as they go through a subscription-based pricing, often on an annual basis, unlike conventional systems where buyers have to make a major up-front investment in
licenses, hardware and software. In the Philippines, this is very important, where many companies are often capital constrained, and can benefit from better cash flow and far greater IT flexibility.

Save money on energy. By eliminating the need for on-premise hardware, cloud computing reduces overall server room electric consumption, which can save mid-size businesses substantial amounts more per
year, especially in a country like the Philippines where energy costs are relatively high.

High availability and security they can’t get from on-premise software. Cloud software architectures are designed from the ground up for maximum network performance, so they frequently deliver better
application-level availability than conventional, on-premise solutions. For example, NetSuite commits to 99.5% availability for its customers, and provides data security such as PCI DSS compliance that would
be cost prohibitive to achieve with on-premise software. Also, having cloud-based solutions gives Philippine companies peace of mind, as sometimes local offices and infrastructure are often more vulnerable
to weather disturbances and natural calamities like typhoons, floods and earthquakes.

Gets business up and running in a few short months. Customers can be up and running with ERP, CRM or ecommerce applications, on a local or global scale, within a few months, rather than the six to 12
months it would take to install and troubleshoot conventional servers and software. With the cloud, systems adjust to the company’s performance needs, dynamically assigning server cycles whenever and
wherever it is needed, and automatically adjusting to spikes in demand. For example: if the business experiences large swings in demand according the season or time of year, such as Christmas, the system
will adjust accordingly.

More time and energy focused on business. Cloud computing lets companies focus on their business rather than on their IT hardware and software. They don’t have to use valuable IT resources to keep
business systems on life support. Instead, they can re-deploy them to focus on more strategic business initiatives while leaving their cloud computing vendor to worry about scalability, security, uptime,
application maintenance and system upgrades.

This growing movement towards the cloud is seen not only in the Philippines but also across Southeast Asia, especially as companies in the region prepare for a more open and integrated environment for the
free flow of labor, capital, and trade under the ASEAN Economic Community. The need for real-time, relevant and reliable information is an absolute necessity to compete in this environment.

And this can only be done with cloud-based systems. By Jan Pabellon, Director, Product Management, NetSuite
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