This is a hot topic in Real Estate at the moment. Should your agency move the trust accounting software to the cloud or should you remain server based? The answer depends entirely on the individual needs of your agency. There is not one size fits all.

It is important to consider some pros and cons of each and decide which option is right for your immediate and long term needs. Remember that your needs today may not necessarily be the same needs that you will have in 12 months time.

My team and I have put together a list of the pros and cons to consider as you decide which software solution is right for you. We base them on the general experiences of our clients.

Remember these are general comments and aren’t specifically related to an individual software so don’t shoot the messenger.

Cloud Based Software

Pros

  • Movable
  • Inexpensive
  • User friendly

Cons

  • Privacy concerns
  • Inflexible
  • Limited access to support
  • Storage of data
  • Basic reporting

Accessibility

By far one of the coolest things about cloud based technology is the ability to access from anywhere in the world. This essentially means that your office is portable. You can be laying on the beach somewhere and working at the same time. This is a huge plus for many agents, especially mobile agencies.

Cost

Most cloud based software typically markets for around $100-$150 per month. Making it quite a viable option for start-up and small to medium sized agencies. It’s priced according to the functionality that you have in the software. Some users have commented that it’s inflexible and you don’t get many options to do what you want in the software.

Just be mindful of the fact that you’re most likely paying a cheaper rate because your access to support is also reduced. Some online cloud based providers do not have a call centre and your only support options are online tutorials and training manuals. If you’re ok with this then cloud based is most likely the best option for you.

Ease of use

There is no doubt that online software is easy to use, reducing stress and saving time. We all want what’s easy but this can also be at the detriment of our client due to the lack of reporting that some online software provides. See 10 Trust Accounting Fails That Will Send Your Landlord’s Packing

Security

With the recent hacking of Xero cloud based software this week, it’s a timely reminder that the information we’re putting out there in the cloud can potentially be accessed by hackers via phishing scams. Take the Ashley Maddison case for instance, all the users names and their information were published online. Don’t forget, cloud based software contains all of our clients names, addresses and personal banking information. Are you comfortable with this level of information being in the cloud? I’m assured from the powers above that cloud based software is 100% secure but I’m also sure that’s what the owners of Ashley Maddison website thought as well. Food for thought.

Privacy

If you are going to choose an online based software ask the provider whether the data is stored locally or overseas? Australia and New Zealand have some of the toughest privacy laws in the world. Unfortunately other countries do not share the same laws which can potentially put our clients information at risk. Also read 10 Questions to Ask When Considering a Trust Accounting Software Provider

Server Based Software

Pros

  • High quality reporting
  • Strong data security
  • Powerful source of information
  • Unlimited support
  • Safer backup options

Cons

  • Immovable
  • Slow
  • Expensive

Functionally

High end report is quintessential to the type of service that we’re providing to our client. You’ve got the ability to provide some fairly powerful reports from server based software and if you’re managing high end properties it’s probably worth considering to invest in such a software that can provide these. If you can’t provide the information your competitors will.

Backup

Loss of data is never fun for any agency. The good thing about server based technology is that you have the option to backup your data using multiple methods – local, offsite, disk, external hard drive or USB. Also read The Importance of Backing Up Your Trust Accounting Information with the 3-2-1 Back-up Rule

Accessibility

Anyone that believes that server based can’t be accessed from outside the office would be incorrect. You most definitely can access your computer offsite with the use of screen sharing technology available to download from the internet. See everything you need to know: Licensees Taking Holidays: Can You Properly Supervise Your Real Estate Office from Overseas?

Speed

Your only limit here is the limit of the amount of money you’re willing to invest in good technology for the office. Users typically complain about the speed of the software. It’s not the software that is the issue – it’s generally the capacity of your server and the memory capacity of the work station it’s running on. Buying a cheap computer to run a high functioning software is only going to cause more stress and heartache for you and your staff.

Costs

It’s the age old saying ‘you get what you pay for’. Remember with server technology you’re paying for the ability to access a call centre and talk to a real human instead of watching a tutorial or reading a book. Support centres cost money and this is built into your subscription which is why you’ll most likely incur a higher monthly subscription fee.

What’s my personal opinion?

I love cloud technology and believe that it is the best solution in certain situations but based on security and backup alone, my preference is server based. I’ve witnessed far too many cloud based disasters to even comment on. Can you prove me wrong? I’m keen to hear your stories about cloud vs server based. Have you had a disaster? What does your agency use and are you thinking of switching? Post your comments/thoughts below.