James Governor recounts an example used by Zack Nelson, CEO of NetSuite, to demonstrate how hosted business software (aka Cloud Computing or Software as a Service/SaaS) helps companies adapt to fast-changing rules and regulations:
During the teeth of the financial crisis the UK government cut VAT by 2.5% to stimulate businesses. For companies running traditional on premise business applications this was a total nightmare. Didn’t matter whether you were a small business running Sage or a FTSE100 firm running Oracle Financials this was a painful change to make. Retailers were in a tough spot. How were they supposed to make all their systems compliant with the rule change.
Unless, that is, they were using hosted Software as a Service (Saas) applications. With the cloud, a change like this can be rolled out to every customer overnight- as easily as Google rolling out a new service.