Love it or hate it, there’s no denying that technology plays a major part in all of our lives. The success of modern payroll businesses depends very much on it.
How do you know if your technology set up is helping or hindering your business? This article compares 2 popular IT solutions; cloud computing vs edge computing and shows which (with our 30 years+ of experience) we believe is best choice for umbrella payroll companies.
First though, what is the difference between cloud and edge computing?
Think of it like this; cloud computing is like a person who connects with friends all over the World via social media. Those friends come from a range of backgrounds and can offer help and advice as long as they are connected.
Edge computing is like a person who has friends that live on the same street. Those friends might not be as diverse or well-travelled as the cloud friends but if you need a cup of sugar, or some help moving a heavy chest of drawers, they are on hand to help out at a moment’s notice.
In short: cloud computing allows an organisation to benefit from resources that are spread across a network such as the internet. Edge computing uses resources that are located nearby.
Cloud Computing with Umbrella Payroll Software
Pros of Cloud Computing
Lower Operating Costs
Cloud computing saves you having to buy pallet loads of expensive hardware and software. Your payroll business gets the benefit of a piece of software or a server that is being maintained by a third party.
Abundance of Resources
Operating your payroll operations across a cloud network means your umbrella payroll service can use technology from virtually anywhere in the World provided it’s available in the cloud.
Easy to Scale
You can use as much or as little as your payroll company needs. Cloud computing allows your payroll business to control not only which technologies you use but how much of them you need. Large organisations such as Sage often provide scalable options for payroll businesses that can be implemented quickly and easily across a network.
Cons of Cloud Computing
Data Protection and Security
Transmitting data across a network can open an organisation up to potential security threats. This is amplified when it comes to transmission of sensitive data such as bank details or other personal information. Ensure you deal with reputable software providers and use proper security to help you umbrella payroll business and your contractors avoid falling victim to cyber crime.
More Susceptible to Network Issues
Networking is the backbone of cloud computing. If your network or one of the services in your cloud network goes down disruption can occur. During 2021 some large cloud computing services suffered outages.
Edge Computing with Umbrella Payroll Software
Pros of Edge Computing
Lower Network Latency
Having resources located close together means less interference on the network, lower likelihood of downtime and ultimately more reliability. This is especially useful if your organisation is performing resource heavy calculations or other intensive tasks that require fast results with minimal disruption.
In an Edge environment you can decide which hardware and software you want to use. This gives you the freedom to tailor your infrastructure according to the specific needs of your payroll business.
Easier to Maintain Compliance
Information in the cloud passes through various hosting providers and data centres, each with its own privacy and regulatory procedures. With edge computing all of the information is stored and processed locally. This allows an organisation to maintain strict compliance procedures and data protection measures.
Cons of Edge Computing
Specialised Know-how Required
Maintaining an edge computing system is no small task. A dedicated team of techies will need to be on hand to build and maintain your IT infrastructure.
Expensive to Maintain
Having your own server humming away at the back of the office is great but all of that tech needs to be powered and maintained over time.
Hard to Scale
Extending your edge environment means adding more physical resources to your network. This takes time and expertise. By definition edge computing involves resources being near each other, if your payroll business expands to a new location you will need to purchase and configure a whole new edge network at the new location.
Our Verdict - Is cloud computing or edge computing best for umbrella payroll software?
In our opinion, a cloud computing solution is best for umbrella payroll software. The advantages far outweigh the challenges.
In the turbulent world of payroll; flexibility and scalability are key. Running your payroll business in the cloud offers both of these benefits. If you would like to learn more about our umbrella payroll software solutions please take a look or contact us.