Adding Power and Portability to Your Software Solutions
By: Paul R. Pavich
Red Moon Solutions LLC

In today's changing business world, the question of whether to run your company's software on your internal network or access it through a hosted site using the Internet is becoming an important business decision.

Businesses continue to rely more and more on technology, yet information technology (IT) resources are often limited. Choosing to use a hosted solution is a way to outsource the IT support for your software. It removes the tedious tasks facing the IT department — installing and supporting applications and managing user data — all while ensuring you are using the most recent versions of your software.

Using an online hosting solution offers many advantages, including:

• Automatic Upgrades — Upgrading the software becomes the host's responsibility. Your IT staff will not have to be involved in applying updates to unfamiliar software and databases. Furthermore, you will always be working with the latest version of the software and have the immediate benefit of all product enhancements.
  
• Increased Application Speed — You can take advantage of the host's investment in the most powerful servers and up-to-date network technology available today. You enjoy the advantages of high-speed application performance without the capital investment.
  
• Enhanced Data Security — The hosting service manages the backup process, maintaining backup software applications and tracking backup activity. Backups are stored in secure offsite locations. No need to involve your IT department.
  
• Superior Hardware Security and Reliability — Hosting facilities are typically housed in strong buildings with multiple layers of physical security. They also feature uninterruptible power supplies, well-conceived fire protection and high-speed Internet connections.
  
• Dependable Disaster Recovery — The hosting service can offer support ranging from restoring backup data to transferring your entire operation to a backup data center.

Although the above reasons for hosting your software in an online environment are compelling, there are numerous questions that you should ask your vendor about their hosting services. A knowledgeable vendor would provide these answers to the following questions:

• How is using a hosted solution different from what I do now? Instead of running your software on your internal network, you will access it through the Internet. The server that currently runs your software, which use to be somewhere in your office, will now be in a secure data center. The information that used to pass between your desktop and your server, across your network, now flows along a larger network — the Internet. This will allow you to work from anywhere. All you need is a PC with a connection to the Internet. The application will still look and feel the same way it always has.
  
• How will I access the application service? Most hosted solution providers use technology called Terminal Server. You log on to your account on the host's server through a Windows Remote Desktop connection. Once connected, you use the application as if it were installed locally. In some cases, your applications are configured to start automatically when you log on to the remote computer.
  
• What if I do not have an Internet connection? You must have Internet access to use online hosting services.
  
• My company data will be traveling over the Internet. Is it secure? Yes. Connection over the Internet is encrypted and secure. The client software on your computer encrypts your data before sending it. Data sent to you from the remote machine is also encrypted. Data is hidden from other Internet users, but it is made securely accessible to appropriate users through the Terminal Services environment. Users who do not have proper permission to establish a connection with the server simply cannot access your data.
  
• How safe is my data? The data center provides increased integrity and security, and it ensures that your data is backed up. Backups are stored in a secure offsite location.
  
• How much does it cost? Costs vary depending on the nature of the software and services provided. The fee structure may offer a substantial savings over performing the IT activities in-house.
  
• Who handles upgrades? Upgrading the software is the responsibility of the host, generally without an additional charge. The software is maintained with the latest version available. Upgrades are scheduled at times that will cause the least interruption.
  
• How do I print? You print to your local printer just as you would with any other software.
  
• I'm running a specialty software solution. What if I need historical information for an audit several years from now? At the end of the year, the host should provide a copy of your database and the current version of the software. You can retain these along with other files and use them as necessary for audits that may occur several years down the road.

The decision to have your software hosted online not only depends on the points outlined above, it will also depend on the time, expertise, and budget constraints of your IT department. Keep in mind that many departments are competing for a piece of the IT department's time and budget.

Your company could save time and money on administration, support, maintenance, upgrades, and deployment, all while improving functionality. Reducing your internal IT burden will give you more time to focus on your core business needs.

About the Author
Paul R. Pavich is the Director of Tax and Accounting for Red Moon Solutions LLC. He has over 30 years of experience in the field of taxation and accounting. Paul has been working in the software development business for the past nine years.

About Red Moon Solutions LLC
Red Moon Solutions is a premier provider of specialty software solutions including Fixed Assets Manager (FAM), Like-Kind Exchange Matching (LKEM), and WorldPro, a solution that assists human resources personnel manage international work assignments. Corporations and accounting firms of all sizes have come to rely on Red Moon Solutions' deep technology experience and broad tax knowledge; which includes over 100 years combined in the tax and accounting software industry.

For more information, visit www.redmoonsolutions.com or call 1.800.224.1260.