With the Goods and Services Tax (GST) kicking in this year, enterprises need to be ready for it, technologically speaking. Adopting a GST-compliant ERP (enterprise resource planning) software would be a step in the right direction. Among the various technologies that can facilitate the transition to a GST model of taxation, cloud, stands out for its features and advantages. This is particularly true for hybrid cloud that yields the maximum returns on investment (ROIs).
This is because cloud technology continues to evolve at a rapid pace. It has progressed from private cloud to public cloud, and now hybrid cloud—which is expanding by leaps and bounds globally. Hybrid cloud has also been gaining acceptability fast with enterprises that worry about the security of sensitive data and have been reluctant so far to shift their data into the cloud.
What is Hybrid Cloud?
Hybrid cloud is an integrated cloud service that uses both private and public clouds to perform separate functions in the same organization. The separate cloud infrastructures operate independently and communicate through an encrypted connection, while utilizing technology which allows for portability of applications and data. Such an arrangement helps organizations store privileged data on private cloud infrastructure, while retaining the advantage of drawing on computational resources from public cloud in order to run applications which rely on that data.
“Hybrid Cloud solutions actually provide you best of both the worlds. It delivers the flexibility of a private server along with the advantages of public Cloud,” said Somesh Misra, VP, Product, Deskera, a global cloud provider.
How exactly does Hybrid Cloud benefit startups, SMEs and other businesses?
Hybrid cloud keeps data exposure to a minimum simply because sensitive data is not being stored for the long term on public cloud. Moreover, hybrid cloud provides a more efficient ERP Cloud experience, with the technology being especially ideal for companies that are just starting out such as startups and SMEs and which usually struggle against a lack of resources. It also brings to the table greater digital transformation and easier operational skills. In fact, such IT solutions could help Indian enterprises enhance productivity and efficiency along with improvements in cyber security.
A GST-compliant Hybrid Cloud ERP would bring in automation for startups and SMEs wanting to negotiate the treacherous path of compliance. It would also help enterprises with other aspects, including quantum of taxes; application of tariffs; and calculation procedures. Moreover, automation removes human error—a small mistake can blow into an inflated tax bill—which can impact the profitability of businesses.