# Cloud Native or ‘Cloudwashed’? Why it Pays to be Picky When Sourcing Software Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2020-09-07 Category: TECHNOLOGY Category URL: https://financedigest.com/category/technology Meta Title: The Benefits of Cloud-Native Software for Businesses Meta Description: Discover why 'as a Service' software is not created equal and the advantages of cloud native solutions for businesses looking to adapt to the modern URL: https://financedigest.com/cloud-native-or-cloudwashed-why-it-pays-to-be-picky-when-sourcing-softwarehtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/untitled-design-8-1736838848650-compressed.jpg) _By **Hugh Scantlebury,** co-founder and CEO,_ [_Aqilla_](https://www.aqilla.com/) Anyone old enough to remember buying computer software that was supplied on CDs, or going further back in time, on [floppy disks](https://obsoletemedia.org/data/disk/#fd), will understand how much the way we buy and use business applications has changed in recent years. More recently, many vendors have adapted their approach away from on-premises installations to provide their products ‘as a Service’ over the Internet, charging for them via the now familiar subscription-based model. This has become a successful approach for a number of reasons. Not only does it allow users to spread the cost of software, it has also given rise to a huge array of highly specialised, bespoke services that can be tailored and adapted by customers according to their needs. Indeed, the success of software vendors is often judged by the amount of ‘Monthly Recurring Revenue’ their [services generate](https://www.financedigest.com/condition-monitoring-service-market-buoyant-with-flourishing-power-generation-industry-adoption-exhibits-a-notable-decline-amid-covid-19-pandemic-fmi.html "Condition Monitoring Service Market Buoyant with Flourishing Power Generation Industry; Adoption Exhibits a Notable Decline Amid COVID-19 Pandemic: FMI"). And that helps to explain why, in the rush to adapt products for the dominant, cloud-based delivery model, not all ‘as a [service’ software is created](https://www.financedigest.com/veritone-launches-marvel-ai-a-complete-end-to-end-voice-as-a-service-solution-to-create-and-monetise-hyper-realistic-synthetic-voice-content-at-commercial-scale.html "Veritone Launches MARVEL.ai, a Complete End-to-End Voice-as-a-Service Solution, to Create and Monetise Hyper-Realistic Synthetic Voice Content at Commercial Scale") equal. Some traditional [software vendors have adapted their approach to offer their legacy on-premises solutions](https://www.financedigest.com/healthcare-software-solutions-to-ride-the-pneumatic-compression-therapy-market.html "Healthcare Software Solutions to ride the Pneumatic Compression Therapy Market") online. Until relatively recently, these [applications were installed within the user’s](https://www.financedigest.com/paper-recycling-market-competitive-growth-strategies-based-on-type-applications-end-user-and-region.html "Paper Recycling Market Competitive Growth Strategies Based on Type, Applications, End User and Region") own IT infrastructure, but migrating onto cloud-based servers makes them accessible through a web browser and allows the vendor to position themselves as a modern cloud-based software provider. The problem with this approach can be that migrating a legacy system to the [cloud means](https://www.financedigest.com/spiralling-azure-costs-dont-necessarily-mean-your-cloud-strategy-is-off-course.html "Spiralling Azure costs don’t necessarily mean your cloud strategy is off course") it can’t take advantage of the service, cost and convenience features cloud customers are looking for. It can also result in  significant improvement costs, and [due to the inflexibility of older systems](https://www.financedigest.com/robot-operating-system-market-is-witnessing-a-sustainable-growth-due-to-increase-in-demand-scrutinized-in-the-new-analysis.html "Robot Operating System Market is witnessing a Sustainable Growth Due to Increase in Demand Scrutinized in the New Analysis"), can be more difficult to update, creating problems around compatibility and integration with newer systems. That’s where the expression ‘cloudwashed’ comes from, and it reminds businesses to [carefully assess](https://www.financedigest.com/home-care-chemicals-market-is-expected-to-expand-at-a-cagr-close-to-5-over-the-assessment-period-of-2021-and-2031.html "Home Care Chemicals Market is expected to expand at a CAGR close to 5% over the assessment period of 2021 and 2031") the capabilities of ‘as a Service’ software before investing. **Designed for flexibility** We can see more clearly why this matters by looking at why ‘cloud native’ software has [become such a success](https://www.financedigest.com/intuitive-decision-making-could-this-approach-be-the-most-underrated-way-to-becoming-a-successful-leader.html "Intuitive decision making: could this approach be the most underrated way to becoming a successful leader?") story. By offering ultra-convenient access to the software, data and services users need, businesses can embrace important trends such as [remote and flexible working](https://www.financedigest.com/digital-insurance-and-the-remote-working-and-studying-boom.html "Digital insurance and the remote working and studying boom"), and bring your own device. And by reducing on-premises resources (including hardware and in-house team IT teams), especially for businesses with [limited physical](https://www.financedigest.com/why-it-pays-for-companies-to-hold-physical-assets-in-separate-limited-companies.html "Why it pays for companies to hold physical assets in separate limited companies") space, technical expertise and budget, users can focus technical expertise on revenue generative priorities. [Cloud native](https://www.financedigest.com/the-journey-to-cloud-native-overcoming-hurdles-to-drive-modernisation-and-achieve-long-term-success.html "The journey to cloud-native: overcoming hurdles to drive modernisation and achieve long-term success") software also offers the advantage of continuous development, as software vendors keep  working on incremental improvements and major updates, allowing them to quickly address bugs and improve their technology based on user feedback. These updates can be rolled out at short notice – a process familiar to any smartphone user –  often avoiding downtime and the need for on-site IT technical expertise. This is a major issue for ‘cloudwashed’ legacy software, where existing bugs and [performance limitations often remain in place](https://www.financedigest.com/esg-investing-does-that-mean-sacrificing-performance-is-the-uk-the-right-place-and-how-to-do-it-properly.html "ESG Investing – Does that mean sacrificing performance? Is the UK the right place? And how to do it properly") when the software is re-released as cloud ready. Additionally, cloud-hosted legacy software does not have the inherent ability to scale that [well designed cloud native services](https://www.financedigest.com/uk-says-baker-hughes-altus-deal-may-hurt-competition-in-oil-well-services.html "UK says Baker Hughes-Altus deal may hurt competition in oil well services") can easily offer. And it’s this kind of flexibility that also [means cloud native services can offer  enhanced security](https://www.financedigest.com/open-banking-as-a-means-to-enhance-social-commerce-security.html "Open banking as a means to enhance social commerce security") protection over traditional  on-premises solutions. If a user does not require all of the functionality available in the solution, for instance, designed-for-cloud vendors are able to facilitate different types of access for a variety of organisational needs, meaning that each [customer is more likely to experience](https://www.financedigest.com/solving-the-customer-experience-conundrum-how-fs-organisations-can-use-data-to-level-up.html "Solving the customer experience conundrum: How FS organisations can use data to level up") a tailored solution. Consequently, fewer resources are wasted on unwanted and unneeded aspects of software development, resulting in a more streamlined [solution for the customer](https://www.financedigest.com/why-no-code-beats-custom-software-and-turnkey-solutions-for-business-automation.html "Why no-code beats custom software and turnkey solutions for business automation"). Furthermore, the use of Application Program Interface (API) [technology within cloud development](https://www.financedigest.com/nano-one-awarded-10-million-from-sustainable-development-technology-canada.html "Nano One Awarded million from Sustainable Development Technology Canada") enables customers to integrate their software with other compatible systems, enabling a “best-of-breed” approach and increasing their ability to tailor and streamline numerous key business functions. This flexibility also [extends to pricing](https://www.financedigest.com/wall-street-set-to-open-higher-oil-prices-extend-losses.html "Wall Street set to open higher, oil prices extend losses") and payment, given that cloud native services can allow users to move from an up-front capital expenditure payment model to a subscription-based service which can be assigned as a monthly operational expense.  By providing clear [pricing structures, usually per user as a subscription model](https://www.financedigest.com/leno-bags-market-witness-a-spike-in-growth-pace-recent-improvements-in-pricing-models-fmi.html "Leno Bags Market Witness a Spike in Growth Pace Recent Improvements in Pricing Models: FMI"), they work in contrast to  cloud-hosted legacy software, which often retains the inflexibility of the legacy pricing model, which can include considerable setup and maintenance costs. As the adoption of cloud [technology grows](https://www.financedigest.com/sulphur-recovery-technology-market-value-to-grow-by-almost-1-2-billion-during-2021-2031.html "Sulphur Recovery Technology Market Value to Grow by Almost .2 Billion During 2021-2031"), so the gap between legacy and cloud-based software widens. Trust in cloud-based services has increased significantly, and the modern workplace is increasingly populated by a [generation of cloud](https://www.financedigest.com/french-cloud-provider-ovh-lines-up-diesel-generators-to-offset-potential-power-cuts.html "French cloud provider OVH lines up diesel generators to offset potential power cuts") native professionals for whom the outsourced, service-based approach to software delivery is the only way they know. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---