Tracking cloud formations here -

We've been reviewing the latest surveys of how restaurants are using Cloud applications - including web based POS -looking at the Cloud adoption research for the industry in general . . . and talking to our own customers. And we thought we'd share some of the issues that keep coming up when the conversation gets Cloudy.

First of all, there's always a tradeoff, and it's the tradeoff that you want to think about when taking any part of your business into the Cloud. That tradeoff is, essentially, performance for price: Cloud applications deliver less predictable performance for a lower initial investment. You eliminate the cost of licensing, managing and maintaining the software. But you always recognize that, in the end, you're not sending information across a 100 foot cable, but across thousands of miles of fiber and servers. So the first thing you want to make sure of is: any performance issues that may happen in the Cloud won't hurt your business.

Companies across the board—restaurants included—handle this the same way: by parceling out functions to the Cloud. It's rare to encounter a business that has put all its eggs in the cloud basket. They look at each operational area (the floor, the inventory, the kitchen, the back office and so on). And they ask: which operations would tolerate that price/performance tradeoff? Just for instance, your database management or your payroll might be good to move to the Cloud; but your order window might not, since even a little network congestion can create cranky customers.

A cloud application—this is why it can offer software at a subscription-type price—is built on a one-size-fits-all model. All the people who subscribe to that application use the same version of it. Your ability to adjust a Cloud application just the way you want is limited. When you address customization and modification, ask two questions: how much customization do you need, and how often do you need it. I'm seeing a pretty clear pattern here too: the areas where changes have to occur often—I'm thinking of things like promotions and menus—tend to stay on the ground. Areas that stay stable—think of inventory management for instance—work well in the Cloud.

One of the best things about the Cloud is that you don't have to maintain the application: it's updated by the people who offer it. That makes it trouble free, but it also means that your staff will sometimes not know there's a new function until it's in front of them. Here, you've got to look to your staff's skills. If they're able to adapt easily to changes in the POS, this can be a nonissue. But if that's not the case, then the unplanned learning curves may interrupt business.

Our advice? Go to the Cloud if it’s in-line with your business objectives, but go carefully, operation by operation, to ensure business continuity, to maintain customer satisfaction, and to ensure the Cloud delivers on its ROI promise.