Businesses face many critical decisions regarding data storage and software deployment every day in the receivables industry. Namely, one recurring decision keeps the goalposts moving: should companies embrace the cloud or stick with on-premise solutions?
Each option presents unique advantages and drawbacks, making this choice a pivotal aspect of shaping a successful receivables operation. Diving into the key differences, benefits, and risks associated with both cloud and on-premise approaches in the receivables industry can ultimately help you understand whether embracing change is beneficial or harmful for your organization.
Cloud Storage and Software Deployment
The Cloud Advantage
Cloud-based data storage and software deployment offer a myriad of benefits for receivables management. Some of the most compelling advantages include:
Cloud solutions provide the flexibility to scale resources up or down based on demand, allowing businesses to adapt to fluctuating workloads without significant upfront investments. Cloud data storage is functionally limitless and allows organizations to quickly meet rising demand.
Cloud systems enable secure access to data and applications from anywhere with an internet connection. This accessibility promotes remote work capabilities, leading to enhanced efficiency and collaboration. This additional accessibility also extends to client interactions, as creditor clients are granted unmatched access to pertinent data.
Cloud solutions often operate on a subscription-based model, reducing the need for substantial capital expenditures and eliminating the burden of maintaining hardware infrastructure.
Cloud service providers handle software updates and maintenance, ensuring that businesses always have access to the latest features and security patches without additional effort. While seemingly innocuous as many organizations have set update schedules for on-premise solutions, cloud data storage centers ensure compliance 24/7 rather than on the time of manual updates.
The Cloud Drawbacks
Despite its merits, the cloud does present some inherent risks that businesses must carefully consider:
Storing sensitive receivables data in the cloud raises concerns about data breaches and unauthorized access. Although cloud providers invest heavily in security measures, the perceived loss of control over data security remains a valid concern for some. And for some receivables organizations working with more antiquated creditor clients, cloud storage is simply against their contract terms and obligations.
Cloud-based operations heavily rely on a stable internet connection. Any disruptions or downtime could temporarily hinder access to vital data and applications, affecting business continuity.
On-Premise Data Storage and Software Deployment
The On-Premise Advantage
Traditionally favored by many businesses, on-premise solutions offer certain benefits that continue to hold relevance in the receivables industry:
With on-premise storage, businesses have complete control over their data, which can be especially appealing for organizations handling sensitive receivables information. Deciding whether that data control is necessary for everyday functions of your business can help you decide one way or another.
Certain regulatory requirements may necessitate storing data on-premise to comply with specific industry standards or legal obligations.
On-premise systems function independently of external internet connectivity, minimizing the risk of data inaccessibility due to network outages.
The On-Premise Drawbacks
However, on-premise solutions come with their own set of challenges:
Implementing on-premise infrastructure demands significant upfront investments in hardware, software licenses, and IT expertise. Unfortunately for those looking to invest, very little money is flowing toward on-premise solutions any longer. Almost all major investments are being made toward cloud services limiting on-premise options.
Organizations must shoulder the responsibility of system maintenance, including software updates, security patches, and hardware repairs, which can be resource-intensive and time-consuming.
Scaling an on-premise system requires substantial planning and investment, making it less agile in response to changing business needs.
Control Versus Adaptability
Ultimately the question becomes what level of control are you willing to give up to gain security measures provided by the cloud. If an organization is willing to allow their CRMs like Latitude by Genesys to provide them with more modern tools and services, then cloud storage and deployments are here to stay.
Ultimately, businesses must carefully assess their unique requirements, risk appetite, and long-term goals to strike the right balance between the advantages and drawbacks of each approach. A hybrid model that combines the strengths of both cloud and on-premise solutions might offer an optimal strategy, providing the best of both worlds to propel the receivables industry forward into a digitally transformative era.
About Latitude by Genesys
Latitude by Genesys® is a comprehensive debt collection and recovery solution for managing all pre- and post-charge-off accounts and workflow processes. It provides collectors and agents with the tools to manage the debt collection and recovery process and provides full functionality for the collector’s or agent’s desktop and deploys as a true zero-footprint, browser-based environment. Since 1996, Latitude’s focus has been to provide the most forward-thinking, attractive solution to the business needs of different people and companies in the accounts receivable management (ARM) space. Acquired by Genesys in 2016, Latitude is continually growing, innovating, and reshaping the technology expectations and customer experiences of ARM companies and their consumers.