Ten-25 Software predicts more and more merchants will migrate to cloud IT systems. Stephen Powney reports

Ten-25 Software has seen its first customers migrate to using its cloud service.

One, an existing customer, changed from a server-run operation, while the other, a new client with branches, switched to Ten-25 from Sage.

Ian Oldrey, Ten-25 director, said the company will be pushing the benefits of its cloud service further in 2012.

“People find it difficult to pin down exactly what the cloud means,” said Mr Oldrey.

“Basically, it means a software service which is delivered over the internet, as opposed to having the hardware of a server on site.”

He said one common example was a hotmail email account, where a service and data were held by hotmail, rather than the user.

“We are in the process of cloud becoming a lot more popular. Apple’s iCloud is coming into popular consciousness.”

Data in one place

The iCloud system, aimed mainly at domestic users, effectively puts all data in one place, which can be accessed by an iPhone, Apple computer or iPad.

“We are doing the same thing with software applications by putting it up on the cloud,” said Mr Oldrey.

Traditional server hosted software platforms required space for infrastructure and require maintenance, he said. Cloud systems, however, could be updated very quickly, required fewer upfront costs and were a lot lighter on network usage.

“Where you have lots of branches and staff the branches get quick and reliable operation,” said Mr Oldrey. “We have a lot of interest from our customer base, particularly those who have lots of branches.

“I would estimate within a few years that half of our customers will be on the cloud. It seems to be very popular with them and you can demonstrate easily to people how effectively it can work.”

Remote access to cloud systems is possible using 3G dongles on a laptop or 3G-enabled smartphones and tablets.

“If people are on business trips they can easily access the system overseas.”

Security

Mr Oldrey admits Ten-25 has had to do extensive security work in the past 12 months to ensure customers are secure when accessing software in this way.

“As with any new style of doing business, there will be people who it will suit and those who it will not suit. It will be popular with big companies that have lots of branches, and with very small businesses that don’t want the infrastructure on site, with all its management and maintenance.”

But he said many mid-sized merchants found hosted operations suited them well. “We don’t see cloud as a complete replacement for servers.”

A cloud system can be implemented very quickly and the main difference in costs is that there are no upfront fees.

Mr Oldrey said installation of a traditional server system would cost from £10,000 upwards, with additional maintenance charges, whereas Ten-25’s cloud model works on a monthly subscription of £45-70 per user.

Another advantage of cloud is users gain immediate benefit from software upgrades due to automatic free updating.

Customers also have the capability of putting all their systems on the cloud platform.