Tax Example Explains the Value of Hosted Software to Business

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.

(Via Monkchips)

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