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True cloud vs fake cloud accounting software: how to tell the difference
Summary
True cloud accounting software is built from the ground up to run in the cloud, giving real-time data, access from any browser and continuous updates that don't disrupt your setup. Fake cloud, sometimes called SoSaaS, is on-premise software adapted to run online and it usually shows through poor integration, patchy performance and rising costs. The clearest way to tell them apart is to ask a vendor about the software's architecture, update model and integration options before you sign anything.
The short version
- Fake cloud is on-premises software adapted to run online, not software built for the cloud.
- The giveaways can be in integrations, performance and cost.
- A handful of direct questions about software architecture expose the difference before you sign.
- Fake cloud tends to cost more over time, through longer contracts and workarounds.
Signing up for the wrong kind of cloud software can be an expensive mistake – especially if you only discover the difference a year later.
Finance teams moving off Sage 50, Access Dimensions or another on-premises system are increasingly told everything on the market today is cloud. Some of it genuinely is – but some is the same kind of software you already had, hosted online and marketed as something new.
The difference can take the form of integration problems, patchy performance and a contract that's harder to leave than it was to sign. The rest of this article sets outwhat separates the two and the specific questions that expose “fake” cloud before you commit to it.
What's the difference between true cloud and fake cloud accounting software?
True cloud accounting software is built specifically for the cloud, offering one real-time version of the data, accessible from any browser. Fake cloud, sometimes called SoSaaS (Same old Software as a Service), is on-premises software adapted to run online rather than built for it. The distinction comes down to how the software was originally architected, not how it's marketed today.
How can you tell if a vendor is selling you fake cloud software?
The most reliable way to tell true cloud from fake cloud is to ask a vendor directly about architecture, access and their update model, rather than relying on how the product is marketed. A handful of specific questions expose the difference quickly, because a true cloud vendor can answer them without hesitation and a fake cloud vendor usually can't.
- How easily can other platforms connect or be integrated?
- Can you access the system from anywhere without a VPN?
- Are there app alternatives alongside the browser version?
- Do you need to log in to a remote desktop application first?
- What development language is the system written in?
- How long is the contract? SoSaaS providers tend to carry a heavier server-hosting overhead, so they often lock users into a multi-year commitment rather than a simple monthly one.
What does it cost you if you choose fake cloud software by mistake?
Choosing fake cloud software by mistake tends to cost more over time. Because it wasn't built for the cloud, it typically integrates poorly with other cloud systems and degrades in performance under real usage. The vendor will also tend to lock you into a longer contract than a true cloud provider would need to, since SoSaaS vendors carry a heavier server-hosting overhead to recoup.
When City of Birmingham Symphony Orchestra needed to move on from its on-premises Exchequer finance software, it was the offered the option of a hosted cloud system. “Exchequer gave us a quote for an Exchequer cloud product but it wasn’t a purely cloud-based system. It was a server that just happened to be in the cloud, rather than driven by the cloud. It was expensive and didn't really fit our needs,” says Sally Munday, CBSO’s Director of Finance and Resources.
“Price was inevitably a consideration. What Exchequer was quoting us for its hosted cloud option just wasn’t affordable. iplicit didn’t necessarily have to be cheap but it had to provide good value for money.”
Where iplicit fits
The only way to know a vendor's software is genuinely cloud-native is to ask about its underlying architecture directly. True cloud accounting software should give every user the same real-time data from any browser, integrate cleanly with the other cloud systems a business already runs and update centrally without disrupting existing configuration. iplicit was built cloud-native from the outset rather than adapted from an on-premises product, which is why real-time multi-entity consolidation and integration with other cloud systems come as standard rather than as a bolt-on.
Ask the architecture questions before you sign
Fake cloud software won’t necessarily look different from the true cloud alternative. For the unwary, the danger is that you don't find out which one you bought until an integration breaks, the performance dips or you try to leave and discover the contract won't let you. It's vital to ask the architecture questions before you sign, not after.
See for yourself
See iplicit's true cloud software in action by taking a quick tour – or book a demo to see how it would work for you.
Take a quick tour
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What is true cloud accounting software?
True cloud accounting software is built from the ground up to run in the cloud, using a single shared version of the data that any authorised user can access in real time from any browser. It doesn't depend on a specific device, browser or remote-desktop connection and it receives continuous updates that don't disrupt your existing configuration.
Why do some vendors sell adapted on-premises software as cloud?
Adapting existing on-premises software for the cloud is usually faster and cheaper for a vendor than rebuilding it from scratch. It lets the vendor market an established product as cloud-based without the cost of a genuine cloud-native rebuild, even though the underlying architecture, integration options and update model don't actually change.
Can on-premises accounting software be converted into true cloud software?
Not in any meaningful sense. On-premises software can be hosted on cloud infrastructure or wrapped with a web interface but that changes where it runs, not how it was built. Genuine true cloud capabilities, such as real-time multi-user access and seamless integration with other cloud systems, generally require the software to be re-architected, not just re-hosted.
What's the single question that most reliably exposes fake cloud software?
Ask how the vendor handles updates. A true cloud provider pushes updates centrally and continuously without disrupting your configuration; a fake cloud vendor usually needs a scheduled update window, a version upgrade, or manual intervention, because the software wasn't built to update that way in the first place.
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