by Linksku

This year’s TECH+ session on Cloud Computing was led by two very well-known in the AICPA community speakers – James Bourke and Erik Asgeirsson.

James Bourke is a Partner and CIO at WithumSmith+Brown. He is responsible for overseeing all technology issues for the firm’s 13 offices and 450 employees. Jim is also the current Chair of AICPA’s Certified Technology Professional (CITP) credential committee, and will be a new member of the AICPA Council for a three year term beginning October 2011.

Erik Asgeirsson is the president and CEO of CPA2Biz (a subsidiary of the AICPA formed in 2001). Erik has more than 20 years of experience leading technology organizations. He is consistently recognized as one of Accounting Today’s “Top 100 Most Influential People”.

Well, as we all know Cloud Computing introduces a lot of change in the organization and Accountants and CPAs don’t necessarily like change. In this session we will be going through the top Cloud computing benefits, concerns, controls and the questions we should all be asking when discussing Cloud services.

Key Benefits of Cloud Computing (CPA2Biz Survey, April 2011):

Accounting Firm Usage of Web-Based Applications

  • Disaster backup & recovery: 86%
  • Improved client service & collaboration: 84%
  • Being able to work anywhere, anytime: 83%
  • Being able to use the latest applications: 80%
  • Being able to serve no-local clients: 78%
  • Virtual and flexible staffing opportunities: 74%

Top Concerns for Cloud Computing (CPA2Biz Survey, April 2011):

  • Security: 80% concerned (Where will my data be stored)
  • Confidentiality: 79% concerned (Concerns around who has access to very confidential data)
  • Privacy: 75% concerned
  • Availability: 67% concerned (Reliability of Internet access & capacity of supplier during high usage times)

Jim Bourke made a really nice comparison between the Cloud and the Credit Card Fraud – “It happens every day and we are all aware of it, but we still carry and use a credit card all the time” said Mr. Bourke

Here are the “Must Ask” questions when it relates to Cloud Computing:

  • What is the Cloud? Executives need to have a good understanding of what the Cloud is and how will it be applied in their organization
  • Where will my data be stored? Data centers are usually a lot more secure than our own server rooms, but we have to educate partners and executives by taking them to a data center every once and a while. When talking to sales representatives, they may not be able to answer the question “Where will my data be stored”, that would be a little concerning says Mr. Bourke
  • What type of security and controls are in place to protect confidential and sensitive data? In the future there will be a lot more regulations that will apply to Cloud vendors, but for right now we can just ask questions. Asking the provider what are their security controls around employees accessing the data would hopefully show us who and when has access to our data. One can also ask the provider what other companies are storing data in the same Data centers they store our data.
  • What type of redundancy does the vendor have in place? The lifeblood is in the Internet, where 24/7 connectivity is critically important. Not only is important that the vendor has redundant sites, but how quickly that redundancy comes back online.
  • What is the vendor’s data retention policy? The Cloud can help improve the data retention policy, but those retention policies MUST be communicated to the provider so they can apply it. The chances that our data retention policies align with those of the provider are very slim and we should not rely on that.
  • Who will have ownership of the data? Have to be extremely careful when signing the agreements with a cloud vendor or provider. Do not assume that the data is your because you created it nor assume that the format the provider stores your data is in readable format. Data need to be in common format that can easily be imported to another provider if a switch is to be made.
  • What happens in the event of data loss or corruption? This needs to be clearly outlined in the agreement. We do not want to have to deal with corrupted files ourselves. The provider should be liable for restoring files or fixing corrupted files.
  • What if you end up in a fee dispute or disagreement with the vendor? Know your rights, and don’t just sign the SLAs. Ask the provider up front to give you an example of what would happen and how it would be handled.
  • How financially stable is the vendor and who or what is behind their primary funding source? Sometimes it is hard to obtain financial data, but that does not mean you should not ask for it. If the vendor is hesitant to provide you with that information, ask other professionals in user groups or conferences.

Technologies that make sense in the Cloud:

  • Tax preparation
  • Tax supporting applications
  • Workflow
  • Bill payment
  • Integrated accounting systems
  • Audit confirmations
  • Payroll & HR

 

© 2011, SaaSChronicles. All rights reserved.

Related Posts: