Why the Cloud is Right for Hospitality

By Gregg Hopkins, Vice President of Marketing at Newmarket International

Gregory Hopkins
By offering a fundamentally faster, less risky, and more affordable solution to
on-premises applications, cloud computing will forever change the economics of h
ospitality information technology. With cost-effective alternatives for applicat
ion enhancement and development, cloud computing provides innovative ways to cre
ate competitive industry advantage. Why are cloud solutions the right technology
strategy for 2011 and beyond?
1. Delivers faster time to value
Cloud computing affords hospitality organizations a return on investment within
weeks, not months or years. Since cloud computing streamlines all stages of the
application development cycle, with complete, pre-built applications and project
management services, developers can immediately focus on customizing features a
nd functionality.
Additionally, cloud applications are much faster and less expensive to scale to
multiple applications since there are no additional costs to deploy more to exis
ting users. And because all applications are built on the same platform, pre-exi
sting capabilities and services can be reused across multiple applications.
2. Requires no up-front capital expense
Cloud computing platforms are based on subscription pricing. Companies can start
small, with virtually no up-front costs, and instantly scale to meet broader bu
siness needs. The ability to pay-as-you-go is categorized as a service rather th
an a capital expense, making it a compelling option for financial predictability
and project accountability. And because there is little risk, cloud solutions a
llow hospitality organizations attain better information technology despite redu
ced capital budgets.
3. Minimizes operational costs
Cloud environments are immediately available and vertically integrated with read
y-to-use services for developers, administrators and end users, cutting project
time and cost. Cloud technology providers even manage the burden of operational
maintenance and support. Performance tuning, patches, and upgrades are delivered
as part of the service, requiring fewer technical resources and minimal demands
on the customer.
Such operational efficiencies are the result of a true multitenant architecture
where users share the application's physical instance and version. Individual de
ployments of applications occupy virtual partitions rather than separate physica
l hardware and software stacks. So every time a major innovation is released, ev
ery customer instantly benefits, resulting in lower risk, rapid innovation and r
educed costs.
As hospitality organizations reap the benefits of placing their technology in th
e cloud, what do industry professionals need to consider to stay on top of this
growing trend?
1. Is the cloud reliable and secure?
In contrast to an on-premises system, data maintained in the cloud is securely s
tored elsewhere. Gone is the fear of losing information if a localized computer
network crashes; and it is accessible from anywhere in the world with an Interne
t connection.

Additionally, cloud technology providers offer secure infrastructure and reliabl

e development platforms using such enterprise-class security as firewall protect
ion, intrusion detection systems, and SSL encryption. Because it relieves the co
st, burden, and liability of maintaining security compliance and certification f
rom the customer, cloud computing saves customers both time and expense.
2. Does the cloud simplify integration?
Gartner estimates that up to 35 percent of the implementation costs associated w
ith on-premises application development is for integration. In comparison, cloud
computing makes it faster and easier to integrate and extend legacy environment
s as well as connecting to other cloud services. And because of the cloud multit
enant architecture, integrations no longer "break" during upgrades, require intr
icate technology dependencies, or lead to vendor lock-in.
3. Are all new technology providers truly in the cloud?
Beware of the "false cloud". Cloud computing might sound like network computing,
but it isn't. With network computing, applications and data are hosted on a sin
gle company's server(s) and accessed over the company's network. In contrast, cl
oud computing encompasses multiple companies, multiple servers, and multiple net
works.
So when considering a cloud computing solution, distinguishing criteria should b
e carefully evaluated. A true cloud technology provider:
does not try to sell hardware
does not need to install software
will have open APIs
does not need to re-architect systems
does not require a specific number of machines upfront
does not run on only one operating system
does not store data in on-premises machines
will connect to any computer or personal device
With limited budgets and a highly dynamic market, it is critical to stay ahead o
f the hospitality information technology curve. With cloud computing, organizati
ons can extend the life of their existing systems with new innovations, improve
time to market of new systems through affordable pricing, and ultimately gain co
mpetitive advantages in the hospitality industry.