As we move toward the release of OGpro, our cloud-based oil and gas accounting solution, we want to make sure that everyone understands the difference between a cloud-based solution and a hosted solution. Many technology experts and insiders use these terms interchangeably, so it is easy to understand why this confusion exists in the marketplace. Shoretel, a communications company, wrote an eloquent post about the differences using a very simple to understand analogy on their blog:
Can Water Clear This Up?
A cloud-based solution is like having your water supplied through your municipal utility. When you turn on the tap, water comes out. Sometimes you need a little water, sometimes you need a lot. Each month you are billed by the utility for the amount of water you used. You don’t ever think about water storage or the pipelines to your house. The utility worries about those things for your whole community.
A hosted solution is more like owning or renting a water tank that is located off of your property, but connects to your home. The water tank is only for your use, but you are responsible for figuring out how much water you will need. You are responsible for filling the tank and you are responsible for maintaining the pipes. It’s pretty much like having a water tank on your lawn, but it is somewhere else.
You pay for all of the water that goes into the tank, whether you use it or not. If you use too much and run out of water, you are out of luck until you refill the tank or get a bigger one. Make sense? You could pay someone else to take care of your water tank for you. You would then have a managed, hosted solution. Cloud solutions are, by nature, managed.
Our hope is that this post clears up some of the questions you have about cloud-based vs. hosted solutions. As we prepare to launch OGpro, we'll be sharing more information in anticipation of the many questions and concerns our clients and prospective clients will have. Please do not hesitate to send questions our way at firstname.lastname@example.org.