Cloud computing has become ubiquitous in nearly all accounting firms. The level of flexibility, scalability, data security, and collaboration cloud offers is incomparable to the legacy IT infrastructure that accountants are used to.
However, given the sheer number of options available, accounting firms often find it challenging to choose the best managed services partner. Making the wrong choice can lead to several issues, including vendor lock-in, migration complexities, and unexpected billing.
Let’s check out the parameters you must consider when evaluating a managed cloud hosting provider.
The first step in finding the right managed cloud provider is analyzing your current IT setup. Create an inventory list of all the tools and technologies deployed currently. It will give you a good idea of the approach you want to take to cloud migration.
Depending on the current IT setup, you can also choose a private, public, or hybrid cloud model. Moreover, you must also analyze your current business processes and future requirements.
Next, evaluate potential providers carefully. One suggestion is to look to review platforms such as G2 to compare vendors, customer feedback, and common strengths and limitations. Every hosting provider will have some trade-offs, but factors such as data security, compliance, or support quality, are often too important to compromise on, so consider those aspects strongly.
It is also worth exploring community forums and industry discussions to understand how the market views a provider over time. Look beyond ratings and pay attention to recurring themes in customer experiences.
Whenever possible, speak with existing or long-term customers to get direct, practical feedback or even references to help validate your decision with greater confidence.
Then, as ever, there’s the issue of data security, arguably the first thing to consider when looking for in a managed cloud hosting provider. In addition to offering data protection against the overall threat landscape, the managed hosting partner must also be proficient in accounting industry-specific threats, such as ransomware, APTs, phishing, and data breaches.
Some of the essential security features you must expect from the cloud hosting partner include DDoS protection, IP filtering, distributed and gateway firewalls, data encryption, OS patch management, Intrusion Detection and Prevention (IDPS), vulnerability assessment, 24/7 network monitoring, risk management, and EDR. The provider must deploy access controls and multi-factor authentication to prevent unauthorized access from remote devices.
Along with data security is accessibility. Any minor downtime can cause operational disruptions, which can impact the overall functions at your firm, and even your reputation
You must choose a managed cloud hosting partner that offers at least 99.9% uptime, which, to be honest, all the top providers in the market should offer. This means that your application and data are always accessible. Also, ensure the uptime value is included in the SLA so the provider is legally bound to meet it.
Customer support is another area of high importance factors when selecting a managed cloud hosting partner. We know problems can occur at any time, especially in remote work environments where multiple users access cloud systems from different locations and devices.
When support is slow or ineffective, even a minor issue can turn into costly downtime and disrupted operations. This is why it is essential to choose a provider that offers true 24/7 support throughout the year, including weekends and holidays.
It is also important to check whether support is available through multiple channels, such as phone, email, and live chat, so help is easy to reach when needed. Review the service level agreement carefully to understand response commitments, escalation processes, and resolution expectations. In addition, confirm whether support is included in the standard pricing or tied to higher-tier plans with added charges.
While you’re at it, consider a provider that offers cloud services designed specifically for the accounting profession. These providers are cognizant of all industry-specific issues and preferences. Consequently, their response time is shorter, solutions are optimized and are often willing to customize the cloud solution according to your specific business setup.
Another aspect that is often overlooked, but nonetheless essential in any provider, is
data backup. For example, on the event of a ransomware attack, having a backup ensures business continuity. Moreover, it also comes in handy in the case of accidental deletions and insider threats.
The fact is, most managed cloud hosting providers do not offer backup solutions or, if they do, they offer them as an additional service and cost.
In short, look to managed hosting providers that offer data backup as part of their overall pricing package. Also, ask for the duration and frequency of the data backup. For instance, some providers take data backup every week, which means in the event of a cyberattack, you will lose one week of data. Shortlist the providers that take data backup daily. The backup must be automated and taken during non-peak hours.
And when it comes to performance in a cloud environment, the infrastructure in which it is built is considerably important. I would strongly advise you inquire about the data centers in which managed hosting providers have deployed their cloud setup.
Data centers can be classified from Tier-1 to Tier-5 (Tier-5 being the most advanced) based on parameters, such as redundancy, downtime, and infrastructure. You should shortlist a hosting provider with Tier-4 or higher data centers.
Apart from redundant infrastructure, these data centers also deploy multiple security systems, including 24/7 CCTV surveillance, multi-level access controls, biometric scanners, motion sensors, and flood detection systems.
Finally, there’s pricing. Simply comparing the pricing plans of all shortlisted prospects is not sufficient. You should evaluate the ROI of each provider by mapping the pricing plans with all the parameters discussed above.
For instance, a provider might offer heavy discounts but offer no backup solution. In that case, you would need to invest in a backup solution, which evens out the discount. Also, check whether the provider incurs any hidden charges, such as those incurred for priority support, but not mentioned in the pricing plans themselves. It is only when paying the bill that you will be surprised.
Moving to a managed service is a big decision and migrating between providers frequently makes little sense. You must choose a hosting provider with whom you can enter into a long-term partnership. This requires extensive planning and involves key stakeholders in the decision-making. Choosing the right provider will ensure a hassle-free, cost-efficient, and secure accounting process.