August 11, 2010

Many independent entrepreneurial businesses are already using cloud computing apps (online Web-based software applications) to run their businesses.  And if you’re not already trying out cloud apps, by 2020 many among us expect them to almost replace local apps residing on your own computers, according to the fourth "Future of the Internet" survey by the Pew Research Center and Elon University.

That’s an interesting prediction about cloud computing, and one I happen to agree with.  But we have a long ways to go before we get there.  There’s still a wide gap between that future vision, and reality of today.  Specifically, I see three issues that have to be resolved.

First, let’s take a look at future expectations. 

According to the Pew survey, the year 2020 is the date that the majority of tech experts and general public say cloud computing will almost replace desktop computing (apps loaded on your local computers).

Seventy two percent of experts and 71 percent of the general public agreed in the Pew survey that in 2020 “most people won't work from a PC running software, but from Internet- and smartphone-based applications.” Another 25 percent of experts and 27 percent of the general public agreed that “most people will still work from a PC running software, with Internet- and smartphone-based applications having some functionality.”

Yet, in my view there are still three key issues to overcome before cloud apps become nearly ubiquitous in small businesses.  The study also noted similar issues to those I see:

-       Mobile apps have terrible interfaces for mission critical business apps -- It’s all well and good to talk about accessing online apps with mobile devices. However, most hand-held devices such as smartphones or even the iPad, don’t yet have user interfaces that make it easy to do heavy-duty work on them.  Today’s mobile devices are much more suited for Web surfing and light messaging.  Ergonomically and physically, it’s hard to spend hours of intensive in-depth work on mission critical business apps using even a small netbook-type laptop, let alone smaller handheld devices. Somehow, the user interface issue needs to be resolved if we’re truly going to be “mobile.”

-       Security and privacy of data are still wild card issues -- These days small businesses are more comfortable with their data being accessible on the Web, than they were a decade ago when I first proposed an application that put customer data online in the company I worked in.  Back then, business owners were horrified with the idea of their data residing anywhere but on their own computers.  Today, there is more comfort with data in the cloud; however, concern has not disappeared.  Every security breach that gets reported in the news, has the potential to lessen business owners’ confidence in Web apps.  Application providers will have to maintain the highest levels of vigilance over security and privacy issues.

-       Customer service for Web apps leaves a lot to be desired --  All too many cloud-based apps make it difficult to get customer service promptly – or at all.  Sending an email and hoping for a response within 48 hours is NOT an acceptable way for most of us to run a business. Nor is being directed to an online forum manned by volunteers, where you may or may not get reliable answers.  We might put up with this for apps that aren’t central to running the business.  But for mission-critical business applications such arrogant “customer service” is just not acceptable.

Join the conversation ( 9 )

• Anita Campbell 1 year 5 months and 12 days ago

  

  TJ, yes, it's only right that if you are paying for an online app, that telephone support be available.
  
  And it's good to know that some companies do step up to the table and provide great customer support by phone -- willingly.
  
  - Anita

• TJ McCue 1 year 5 months and 12 days ago

  

  This is an excellent post, Anita. I'm amazed to read the Pew findings. I would have thought sooner than 2020! Regarding customer service, I think the companies that are serious about being players are dedicating resources in this way. Big Commerce, Infusionsoft, Batchbook, Shiftboard (all companies I've reviewed by the way) pick up the phone when you call and genuinely try (and usually succeed) to serve the customer. Building the cool app is only a part of the equation, as we all know.

• Sandor ( Sandy ) Lenner,CPA 1 year 5 months and 20 days ago

  

  I agree that there needs a lot more work for mobile apps. to work in the cloud. However, Cloud based applications, especially those that integrate and work well with Google have a good chance of success. Especially those that work with both Outlook and Google, like Tungle, a scheduler to be used with multiple parties, similar to Doodle.
  
  Another example of an accounting application, that works great in the Cloud is Intuit's QuickBooks Online Plus for a reasonably priced monthly subscription fee. You have to take the time to understand how it and you need a good web connection for it to function effectively. I have been recommending it to my clients and friends who I believe can benefit from a great accounting bookkeeping Cloud based application.. Its well thought out and works great. Its not as good as QB Pro or Premier, but if you need or want the Cloud experience, then you should consider it.
  
  Sandor Lenner
  http://miami-accounting-online.com/quickbooksonline.aspx
  

• Anita Campbell 1 year 5 months and 20 days ago

  

  Hi Brett, thanks for commenting. That's a great point about a phone call being able to solve a problem quickly. It sure beats going back and forth through email -- especially since we know it's sometimes much harder to communicate in a medium like email.
  
  - Anita

• Brett Owens 1 year 5 months and 20 days ago

  

  Hi Anita, I completely agree that the full transition to the cloud is likely to take longer than anticipated - in fact, I think it already has! The desktop has been left for dead for years - and while there's no doubt the trend is towards the cloud, it's a slower one to play out than many techies anticipate.
  
  As you mention, the people factor is huge. First, people are slow to change the way they do things - it's just natural. I know I only change my way of doing something, or adopt a new tool, when I feel quite compelled to do so.
  
  Also yes, too many SaaS companies try to hide behind their computers. When in reality, it's often much quicker for both parties to just take a phone call - rather than have an extensive back and forth exchange via a support forum or via email.
  
  About a year ago we got a 1-800# and made it very visible from our homepage, and there's been no looking back for us. And we still probably get 20 emails for every 1 phone call - so we don't get deluged by any means - I think overall it's important to give people the choice.
  
  And if we see a "sticky" support situation developing in the forum or via email (or Twitter too), the 1st thing we do is pick up the phone and call the person. It's amazing how you can turn an unhappy camper into your BFF just by having a live conversation!

• Anita Campbell 1 year 5 months and 20 days ago

  

  Hi Paul, Oh, I didn't realize that you ran QuickBooks Online in a past life. Well, you understand first-hand the issue about data security. It still makes business owners nervous, especially when highly publicized incidents occur. But it seems to be less of an issue these days.
  
  And as business owners, I think we need to remember that despite some highly-publicized lapse in security, the vast majority of the time our data is safe -- certainly as safe as or probably MORE safe than on our own servers, which are hackable.
  
  - Anita

• PAUL ROSENFELD 1 year 5 months and 20 days ago

  

  Anita, as usual you're comments are spot-on! I was the General Manager of QuickBooks Online Edition from 2003-2005 and during that time our top barrier to adoption was "security of my data." Despite the extra security afforded by double daily back-ups offsite from your small biz, hosted by a multi-million dollar data center, the concerns persisted.
  
  Fast forward 5-7 years later and I'm so gratified to see that issue has receded. Indeed, your other two issues are truly barriers. I suspect the culprit on customer service is a) price points get slaughtered online so service is the first part of the business model to evaporate and b) much software on the web isn't terribly great user experience, leading to the need in the first place for customer service.
  
  Both are hopefully fixable... Best, Paul

• Anita Campbell 1 year 5 months and 20 days ago

  

  Hi Pankaj, I am glad to see a cloud app provider like Hyperoffice working on issues such as prompt customer support.
  
  Unfortunately, too many of us have gotten used to getting support in product forums -- which may be OK when the app is free (after all, how much can you expect for free?). But when you're paying for an app and it's critical to your business, that model is simply not acceptable at all.
  
  I can't stand it when app providers "hide" the information on how to get customer support, all the while claiming they offer it. They try to get you to give up before contacting them. (Shakes head.)
  
  Thanks for commenting.
  
  - Anita

• Pankaj Taneja 1 year 5 months and 20 days ago

  

  Insightful article. We are trying to improve HyperOffice on these very counts. In the days of on-premise software, users could immediately go to the IT dept to get a problem resolved. But when your entrusting your software to a third party, the support should be equally prompt.
  
  Pankaj
  http://www.hyperoffice.com