AMORITIZING THE COST OF NEW SOFTWARE
The cloud allows a company to amortize the cost over a period of time, so basically your expensing the software as opposed to capitalizing it in the Accounting world. Typically, under a Capitalization Model you’d have to go to the Board of Directors, to get approval to spend an enormous amount of money on a piece of software and implementation. As opposed to the cloud where you could potentially expense it on a month-to-month basis, so instead of paying $100,000 for a piece of software now your're paying $1000 a month. The monthly charges is nice because typically organizations, cloud services have month-to -month contracts only, so if you decide to move it in-house at a later date it is always possible.