Pitonio, Jessica

A Comparative Study on the Perceived Satisfaction of Cloud Based Accounting

Software to Selected Business Process Outsourcing Companies in Metro Manila

Review of Related Literature

1. Features of in-house server and commercial cloud-based accounting software

A global survey by US analyst TBR discovered the growing numbers of

companies applying cloud-based accounting software as it has the innovative
features which is convenient in a busy operation. The cloud-based accounting
software, whether in-house or commercial, have features that either favors one or
another. A key feature which is remote access is the reason behind companies often
opting for commercial as with only an internet connection, a compatible device, and
the proper access authorization, a company can easily access the data anytime and
anywhere whereas in-house has physical limitation. There are more features where
both systems are quite different from each other such as scalability, which comes in
handy when expanding and upgrading a server, as well as security and data backup,
which not only consider the IT security measures necessary to counter the prevalent
IT threats but also the edge of recovering quickly. Furthermore, there are features
that can be only available with in-house server such as the customization which
allows the company to customize the platform in satisfying their needs. Moreover,
supposing in-house server offers a more secured platform as there is no third-party
involved, commercial also has a feature of staying up-to-date with fixes and updates
to keep up with the ever-changing landscape of cloud security (Oxford Economics
and SAP study, 2016).

2. Comparison of in-house and commercial cloud based accounting software

An in-house server, also known as a dedicated server, allows the company to

have fully physical control over the server system and modify it according to the
needs as it needs no reliance upon a third-party to cater the needs of a company as
they have their own team of IT professionals and a personal IT infrastructure
whereas the infrastructure is set up on the office premises with its own dedicated
space for the server system. On the other hand, a commercial cloud-based
accounting software relies upon a service provider for the server infrastructure and
IT needs, removing the physical limitation that comes with in-house hosting and
allowing for the centralization of data (Mohak Arya, 2020).
3. Adoption of cloud computing

The adoption of new computational paradigm called cloud computing had

decisive factors to consider such as scalability, reliability, cost savings, as well as
relevant factors which are security and privacy. In adopting cloud computing,
unanimously, the size of a company was believed to define the degree of it being
a necessity. However, a study claims that adoption of cloud computing has been
beneficial to small and medium enterprises due to economic factors arising from
scalability which was supported by the argument of Gupta et al, (2013). By
contrast, Delta Inc., had discover reliability as the key factor for large companies.
Moreover, the type of business is seen to influence the adoption of cloud
computing as it tends to show the greater relevance of working with mobility or IT
by the means of network access and interoperability, respectively (Henderson,
2012).

References

HENDERSON, J.C. (2012) Business Value from clouds: Learning from users.
MIS Quarterly,11(1):51-60

MOHAK ARYA. (2020, October 12). In-house server vs cloud hosting. Ace Cloud
Hosting. https://www.acecloudhosting.com/blog/in-house-server-vs-cloud-hosting

OXFORD ECONOMICS. (2016) The cloud grows up. Oxford, UK.

https://www.oxfordeconomics.com/recent-releases/the-cloud-grows-up