August 11 2016

CIOs Vouch For Cloud Technology. Why Hotels Should Get on Board!

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For a long time, hospitality technology has been old, cumbersome, and expensive – or so the conversation goes. But newer technologies are providing innovation solutions to hotels’ IT headaches – solutions that are faster, less risky and far more affordable and cost-effective.

There have been many articles and studies in previous years predicting when Cloud was going to “take off” – but like many technologies before it, there have always been a lot of presumptions and not necessarily a lot of concrete action. But, while this may sound ironic, 2016 might just be the year that hotels will finally jump on the Cloud bandwagon! And here’s why we think so.
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A recent survey by Unisys and Microsoft on ‘Trends in Cloud Computing’ has revealed that CIOs are intensively advocating and driving migration of their organizations’ IT resources to the cloud. Not surprisingly their reasons to change include;

    • Cost reduction/transforming capital expenses to operating expenses – 63%
    • Enabling computing capacity on demand – 62%
    • Freeing IT staff to perform more high-value work – 51%
    • Changing the perception of IT from cost centre to competitive advantage – 33%

It seems that businesses have finally reached a point where management is really beginning to realize the benefits of switching from in-house enterprise software solutions to a cloud based system.

Looking to the hotel industry, it also appears that Cloud has become a key focus area, with Gartner predicting that Cloud-based technology will account for the bulk of new IT spend in 2016. With a potential to cut 50% of operational costs, not to mention it’s flexibility allowing access anytime /anywhere, it’s constant data back ups and upgrades meaning no network meltdowns or detrimental loss of information –( the list goes on) – the industry has already gleaned a good picture of its primary benefits.

“Companies from even most traditional and change-resistant sectors are seeing the writing on the wall: Cloud technology strategies cut cost and risk. That messages is impossible to miss, especially as CIOs peer five years into the future and the alternative of massive unsustainable overhead stares menacingly back.” Dustin Smith, Sr. Product Marketing Manager, Tableau Software.

Out of all the surveys, studies, articles, posts on the Cloud (including this one!) one thing is for sure, Cloud is the new normal for most businesses, and for the hospitality sector Cloud technology is no passing fad. If you do use the technology to your advantage, not only are there major monetary savings to be had along with greater operational efficiencies, but hoteliers have the ability to deliver a more personalized service, resulting in increased customer loyalty and guest satisfaction. So, if your preference is to keep with your existing legacy system, be prepared to miss out on all the benefits new tech has to offer.

Maybe it’s time to get on board
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Read more articles on Hotel PMS, Mobile PMS and Cloud PMS.