TECH

hree years ago, flower retailer

T Island Rose became one of the first

companies to take advantage of the
Internet to better manage its operations
and save on costs. Through a software
that employees can access online 24/7,
the company was able to keep its books,
manage inventory, plot marketing, as well
as track customer orders, sales, shipping
and payments, among others.
One of the significant improvements it
saw was in the processing of orders. In a
regular e-commerce business, orders are
done through email. Getting 100 orders
could mean a bottleneck in the system
if there’s only one person processing the

CLOUDY
orders. But with its cloud-based enterprise
resource planning software (ERP), Island
Rose can handle as many as 10,000
orders, with little manpower. It only has
50 employees, including six who handle
customer service when it sells an average
of 1.5 million to 2 million flowers annually.

WITH A CHANCE
“Our ERP... makes the entire process—
from the assembly to the delivery of the
order—so much faster,” says Island Rose
CEO Dustin Andaya.
Island Rose is just among a growing
number of Filipino companies that have
turned to cloud computing—or web-based

OF PROFIT
ILLUSTRATIONS BY ELECTROLYCHEE

computing—in their day-to-day operations.

“Cloud computing is really very simple.
It supplies you with information without
having to rely on local servers as long as
you have a stable Internet connection. You
can have your servers and network offsite
within a cloud network,” says Jan Pabellon,
How web computing can help your business principal product manager for Asia-Pacific
and Japan at Netsuite, which provided the
WRITTEN BY CHARLENE PE ERP system for Island Rose.

www.entrepreneur.com.ph/themagazine JUNE 2014 39

TECH
While cloud computing in the country
is still fairly new, the Philippines’ leap
from 14th to the 10th place in Asia Cloud
Computing Association’s Cloud Readiness
Index within a three-year period reflects the
cloud’s potential in shaping the IT industry
and the way businesses work in general.
On a global scale, cloud computing
is gaining rapid adoption, with the
International Data Corp. predicting
$2.5 billion in cloud-managed
infrastructure and managed services
revenues by 2018.

TRANSFORMING ENTIRE INDUSTRIES

“We think that cloud computing is the
next logical step for the software industry.
It has a transformative effect on other
industries in helping them become more
effective. In the future, you can use
cloud service to generate data based on
the applications you access, social app
location data, and likes,” says Pabellon.
Cloud computing allows people to
access data remotely from any device, as Cloud computing allows people to access
long as they have an Internet connection
and a web or mobile browser. By storing
data remotely from any device, as long as
information in the cloud, companies do they have an Internet connection and a
not have to worry about data recovery in
the event that their computer hard drives web or mobile browser.
crash. In fact, some Filipino companies
today have unknowingly adopted cloud Association’s executive director. see what [your colleagues are] doing as you
solutions, like Skype’s teleconference Industries as diverse as business log in.” Island Rose employees can remotely
service and web-based email services like process outsourcing, health, and access inventory information and monitor
Gmail and Yahoo Mail. education have started to leverage on production levels at the company’s Tagaytay
“Cloud is the next wave of evolution cloud for their requirements. farm in real time. The real-time information
in the computing industry. It holds a Pabellon says businesses can enhance allows the company to better handle its
lot of opportunities for various sectors collaboration across their franchise and supply chain, set distribution schedules,
because of its cost benefits. With better distribution networks through the cloud. and dispatch vehicles in line with demand,
connectivity, cheaper devices, and better Andaya of Island Rose says, “One of the especially during occasions like Mother’s
Internet access, cloud computing is advantages of using the cloud is real-time Day or Christmas. The cloud infrastructure
becoming more and more pervasive,” says access to information, which heightens your has actually given Island Rose the capability
May-Ann Lim, Asia Cloud Computing ability to work in a team because you can to expand beyond flower retail and start

CLOUD STORAGE
CLOUD ON A BUDGET Google Drive, Box, Dropbox, Amazon
Cloud Drive, and OneDrive offer 15GB,
10GB, 2GB, 5GB and 7GB free storage
Asia Cloud Computing Association’s May-Ann Lim says space to users. Users can edit files
that some cloud applications are free, while others cost and share photos or videos remotely
thousands of dollars, as in the case of sophisticated cloud with teammates based on controlled
computing infrastructure. “But don’t be afraid of the privacy levels. Users can also subscribe
costs—the good thing about the cloud is that it’s scalable. to monthly plans that fit the scale of
There’s no one-size-fits-all model,” she says. For companies their business operations—whether
unsure of processes to migrate to the cloud, it’s advisable involving unlimited storage for a large
to start with basics like web-based email services before number of users, or a team of five. Some of these services allow
looking at “add-ons.” Whether you’re a techpreneur or a users to try their plans for free. SMEs can use Dropbox for
retailer, here are some budget-friendly web-based cloud Business, as well as Box’s Starter and Business plans, without
services and apps you can use for your business. paying fees for 14 days.

40 JUNE 2014 Entrepreneur Philippines

selling items like candies and accessories.
GrabTaxi, the country’s first taxi-
booking smartphone application, is
another cloud advocate. It relies on real-
time information from the cloud so taxi
drivers would know where the cab-riding
population is located, says Managing
Director Brian Cu.
GrabTaxi also leverages on the cloud
for back-end operations. Cu notes that
the company relies on the online-based
Google Spreadsheet, accounting software
WaveApps, and customer service software
FreshDesk. “We believe in the cloud.
It provides cost benefits for startups
that don’t want to spend on capital and
infrastructure which will eventually
become obsolete,” he says. Using cloud-
based document sharing services like
Google Docs, for instance, facilitates
GrabTaxi’s regional and cross-country
operations as staff can collaborate even at
great distances from each other.
WHAT GOES INTO THE CLOUD?
Depending on the kind of industry they
are in, small and medium enterprises
(SMEs) can easily move administrative
functions and supply chain into the cloud.
“For a retail business, you can subscribe
to a service that allows you to handle
payroll in the cloud. With records in
the cloud, you can then get [a part-time
worker] manage it for you,” says Lim.
SMEs can likewise use email electronic
marketing solutions such as MailChimp
to enhance their marketing campaigns
and customer relationship management
services like Salesforce to “track orders,
learn about customer preferences, and
attract and retain clients.”
Island Rose’s cloud-based suite,
for instance, allows it to coordinate
CLOUD SPEAK
SMEs can keep in touch with their client
and supply networks through free online
services such as Skype and Google Talk.
These apps allow users to connect with
their contacts for free as long as they
have the same application installed in
their PCs or mobile devices.
As both Gmail and Google+ are
integrated into Google Talk, users can
message their contacts in real time,
conduct voice and video calls, and receive notifications of incoming
messages, calls and Gmail messages, in the same platform. Skype also
allows users to send messages and make voice or video calls to other
Skype users without charges.
marketing promos to ensure that these KEEPING SAFE IN THE CLOUD
are in synch with product demand. “The How do you keep your data
management can easily look at sales by safe in the cloud? Here are
the minute and track inventory levels. some pointers:
If we see some lags, we do promos and
proactively offer discounts,” says Andaya.
Also, Lim says cloud computing links PASSWORDS
customers and marketers in real-time, Come up with a strong
so companies do not have to worry about password that uses symbols,
numbers, and letters in both
“losing customers just because they can’t
uppercase and lowercase.
get to [them] when they need the product A strong password reduces
or service, [assuming stable] processes the chance of hackers getting
and computing power, which are in. Changing the password
dependent on the service provider.” periodically is also advisable.
She says food and beverage businesses
can also put Human Resource functions KNOW THE TERMS
like employee timetables in the cloud. AND CONDITIONS
“Also, cloud allows you to easily get up Understand the terms of the
and running and continue the business contract you enter into with the
cloud company you’re hiring
immediately even after a disaster as
when it comes to data privacy
data [stored in the cloud] will never be and security. May-Ann Lim says
lost. Cloud computing also allows you to companies should realize the
outsource functions to make things less terms would be in accordance
costly and time-consuming,” says Lim. with the laws where the
Andaya notes that Island Rose’s IT company operates.
department has encountered fewer problems
after switching to the cloud as the move PUT IN USER CONTROLS
eliminated the need to rely on different Control who among your staff
kinds of software. “From landing orders can access specific folders or
edit documents in the cloud
to answering concerns, we are banking on
platform. Adjust settings to
just one system. It’s also easier to maintain trace network activities, receive
without [the stress of ] hardware upgrades, notifications on changes, and
and we have less worries on data security.” track edit history.
Unfortunately, most businesses today
still do not have a keen understanding RESEARCH
of cloud computing to fully leverage on Choose a reputable and
it. “Most companies do not know how to trustworthy provider. “Put
move to the cloud and are not sure about [your data] under the care of
which applications to order,” notes Lim. a professional cloud service
provider with [the right]
But the benefits speak for themselves,
resources and technology, so
as Andaya of Island Rose points out, you can have that peace of
“Cloud has enhanced our efficiency and mind that your data [remains]
our ability to grow our business.” protected,” says Jan Pabellon.
FREE COLLABORATIVE PLATFORMS
Organizations can share files,
disseminate news to employees, and set
up a group to keep specific teams posted
on project status through enterprise
social networking service Yammer’s
Basic Network. Employees can connect
with colleagues and instantly get the
information they need through the
service, which Microsoft bought in
2012. Companies that opt to avail of the
service at a monthly rate of $3 per user will be able to access its range
of customer support services, user control options, and advanced
integrated solutions like Microsoft Dynamics, a line of ERP and CRM
software applications. E
www.entrepreneur.com.ph/themagazine JUNE 2014 41