The Cloudwashing Scam: Why Real Cloud Pay Matters to Your Business

There’s no denying the huge benefits that cloud payroll platforms offer businesses. But beware: cloudwashing is lurking! Many payroll systems claim to be cloud-based but fail to deliver the real benefits. This hidden burden can cripple a business in the long run.

The good news? It’s not hard to tell the real cloud-native from the fakes. Here’s why understanding the difference is crucial and how to ask the right questions to avoid the cloudwashing trap.

Why is it worth modernizing your payroll system?

Many companies are stuck with outdated payroll systems, often more than a decade old. This means missed opportunities to increase efficiency and save costs. Modern, cloud-based payroll software can deliver big benefits in terms of productivity and profitability.

Cloud-native payroll allows HR and payroll professionals to accomplish more while spending less time on routine tasks. It’s not uncommon for companies to reduce processing times by a third when they move from desktop payroll applications to the cloud.

Real Cloud vs. Artificial Cloud: What’s the Difference?

Not all supposed cloud solutions are created equal. Here’s how to tell if your software vendor offers a true cloud platform:

• One platform that can serve multiple clients. True cloud software runs on a single platform that supports multiple clients, accessed via an internet connection and browser. Cloud-native offers scalability and affordability. For example, there’s no need for a VPN, and you can seamlessly unlock more features with the flip of a switch. Traditional systems burden companies with individual copies of software and high update costs. And when those same systems are hosted as a private or client-specific instance (like a virtual machine), nothing has changed since they were on-premises. It may look like the cloud because it’s accessed via the internet. But the backend still requires individual maintenance.

• Think restaurants, not home kitchens. Think of your kitchen as on-premises software: you own it, maintain it, and pay for updates. A cloud-native system is like a restaurant kitchen. You, the guest, enjoy delicious meals (payroll processing) at a reasonable cost as the kitchen scales to serve many. Cloud cleaning software pretends to be both, ultimately shifting the burden to you, the customer.

How Fake Cloud Software Is Hurting Your Business

Fake cloud solutions often require you to create a new database and/or software instance for each customer. This can result in complexity, higher management costs, and hidden fees with the same maintenance requirements as payroll software. A true cloud offers automatic updates for all users, eliminating individual downloads and disruptions.

A fake cloud or cloud-based cloud can limit your choices by forcing you to adopt unnecessary features, skip updates, and drive up costs. It can be difficult to scale, making growth difficult. A true cloud scales seamlessly, adapting to businesses of all sizes.

Ask yourself these questions to avoid cloud pay fraud

• Is the software a single, scalable platform supporting multiple clients?
• Are updates made available to all users automatically at the same time without additional charges?
• Will the platform be able to operate without any problems outside the country’s borders?
• Can users log in using only an internet connection and any web browser?
• Is adding and removing users a seamless process?
• Is the software built on cloud technologies such as microservices?
• Are there self-service tools available that run in the browser or in mobile apps?
• Does the software integrate with APIs and webhooks for broader functionality?
• Can the platform generate reports tailored to stakeholder needs?
• Does the software allow for easy automation of business processes?

If the answer to any of these questions is “no,” proceed with caution. True cloud software offers all of these features seamlessly. A fake cloud can mimic some of the capabilities, but at significant cost and complexity in the background.
True cloud solutions can transform your business

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