There’s no denying the massive advantages cloud-native payroll platforms offer businesses. But beware: A cloudwashing scheme lurks! Many payroll systems claim to be cloud-native, yet fail to deliver the true benefits. This hidden burden can cripple a business in the long run.

The good news? Distinguishing real cloud-native from the counterfeits isn’t difficult. Here’s why understanding the difference is crucial, and how to ask the right questions to avoid the cloudwashing trap.

Why upgrade your payroll system?

Many businesses cling to outdated payroll systems, often more than a decade old. This means missed opportunities for efficiency and cost savings. Modern cloud-powered payroll software can bring big benefits in productivity and profitability. 

Cloud-native payroll empowers HR and payroll professionals to achieve more while spending less time on routine tasks. It’s not uncommon for companies to slash processing times by a third after switching from desktop payroll applications to the cloud. 

Real cloud vs. fake cloud: What’s the difference?

Not all supposed cloud solutions are created equal, though. Here’s how to identify whether your software provider is offering a genuine cloud-native platform:

• One platform, able to serve many customers. Real cloud-native software operates on a single platform serving multiple clients accessed with only an internet connection and browser. Cloud-native offers scalability and affordability. There’s no need for a VPN, for instance, and you can seamlessly unlock more features with the flick of a switch. Traditional systems burden businesses with individual software copies and hefty upgrade costs. And when these same systems are hosted as a private or client-specific instance (like a virtual machine), then nothing has changed from being on premise. It might look like cloud because it is accessed via the internet. But the backend still needs individual maintenance. 

• Think restaurants, not home kitchens. Imagine your kitchen as on-premise software: you own it, maintain it and pay for upgrades. A cloud-native system is like a restaurant kitchen. You, the diner, enjoy delicious meals (payroll processing) at reasonable costs because the kitchen scales to serve many. Cloudwashing software pretends to be both, ultimately placing the burden on you, the customer.

How fake cloud software hurts your business

Fake cloud solutions often require the creation of a new database and/or software instance for each client. That can result in complexity, higher management costs, and hidden fees with the same maintenance requirements as when the payroll software was on premise. True cloud offers automatic updates for all users, eliminating individual downloads and disruptions.

Fake cloud or cloud based might limit your choices, forcing you to adopt unnecessary features, missing updates and driving up costs. Scaling can be a struggle, hindering growth. Real cloud scales seamlessly, accommodating businesses of all sizes.

Ask these questions to avoid fake cloud payroll

• Is the software a single, scalable platform serving multiple clients?
• Do updates automatically roll out to all users at the same time without extra charges?
• Can the platform seamlessly operate across borders?
• Can users log in using only an internet connection and any web browser?
• Is adding or removing users a hassle-free process?
• Is the software built on cloud technologies like microservices?
• Are browser-based and mobile app self-service tools offered?
• Does the software integrate with APIs and webhooks for broader functionality?
• Can the platform generate customized reports for stakeholders?
• Does the software allow for easy business process automation?

If the answer to any of these questions is “no,” proceed with caution. Real cloud-native software offers all these features seamlessly. Fake cloud might mimic some capabilities, but at a significant cost and complexity in the background.
True cloud-native can transform a  business

The future is cloud-native, and that’s where smart businesses are headed. Using real cloud payroll feels like switching from a bank branch visit to a mobile banking app. Don’t be fooled by outdated software disguised as something new. By embracing the power of real cloud payroll, you can unlock a world of benefits for your business. Avoid the pitfalls of cloudwashing and join the wave of innovation.