Cloud computing, the invaluable technology at the heart of cloud-native applications, has transformed the way we do business. Since its widespread emergence in the early-to-mid 2000s, cloud-native applications have steadily grown in popularity. They have overtaken on-premise alternatives due to their increased performance capabilities, greater security and flexibility, and the fact that you can access cloud-native software from wherever, whenever.
If you are like many people, you might even regularly rely upon cloud-native applications without realising it. Do you watch Netflix? Do you log into Gmail? Have you ever ordered an Uber? If so, you have used cloud-native applications.
In fact, these apps are now at the heart of both our professional and personal lives:
- The global cloud computing market is now worth $332 billion (USD), up from $145 billion a mere four years ago;
- The average person uses 36 cloud-based services each and every day;
- Research suggests that by 2022, 90% of all companies will use multi-cloud environments.
This blog will examine the technical aspects that define cloud-native applications, outline how they differ from on-premise alternatives, and finally, explore the benefits of cloud-native applications — especially when it comes to powering collections operations.
What does ‘cloud-native’ mean?
A cloud-native approach harnesses the power of cloud computing when constructing (and running) applications. It takes advantage of microservices architecture, meaning each application is a collection of small services that operate independently.
Those services are then packaged and isolated in containers. As a result, they are easily portable — so you can switch to a different environment (e.g. log into another computer) without losing any data.
How does this differ from on-premise applications?
On-premise applications are just as they sound — the application is stored and run on a single premise (such as a desktop computer). The data that it generates is also stored on this premise, meaning you can only access the data by logging into that computer.
For example, Microsoft Word might have been installed on every single one of your office computers, but the documents that each user created could only be accessed by logging into the very same computer. This is a far cry from creating something using Google docs, which is then readily accessible from any computer.
Put simply, cloud-native applications are accessible, flexible, and always evolving. On the other hand, on-premise versions are less accessible, more rigid, and only evolve a few times a year via the waterfall method of development.
What are the benefits of a cloud-native software in collections?
There are four major benefits of cloud-native applications.
1. Cost-effectiveness
Cloud-native applications run on the cloud. In other words, you can use them without needing your own, highly expensive server. Servers not only require initial upfront investment (ranging from a few hundred euros all the way up to tens of thousands), but you also have to pay their hefty energy bill. If you have a fairly large team then you will need far more than one server alone.
Plus, since everything is built and hosted on the cloud, you can easily scale up projects while eliminating the costs associated with server-to-server integration, application developments, ongoing system management, and so on.
This makes cloud-native, digital-first software a great option for collections departments. They can avoid upfront hardware investments and forget about time-intensive and costly ongoing maintenance. Perhaps best still, they can scale up or down to meet their current needs at that moment in time.
2. Rapid implementation
Cloud-native applications are pre-built, meaning you can simply apply them to other services without any delay (a concept known as ‘plug and play’). There is nothing worse than purchasing a new app but having to wait until it has been properly implemented within your existing tech ecosystem.
Collections teams are busier than ever before amidst a rising wave of non-performing loans (NPLs). It is therefore crucial that they spend as much time as possible on impactful work, such as identifying their best-performing outreach strategies and fine-tuning their customer segmentation approach, instead of trying to implement their new collections management software.
3. Continuous delivery/updates
Organisations leveraging cloud-native applications also benefit from their continuous delivery/deployment. In other words, companies that create these applications are continually building, testing, and releasing new versions. As soon as the updates are ready, users’ applications are automatically updated. This became even more important during COVID-19 when businesses were suddenly grappling with a range of brand new, completely unforeseen challenges.
Of course, unpredictability will continue long after COVID-19 is but a distant memory. By leveraging cloud-native applications, your collections department can rest safe in the knowledge that if new regulatory, economic, or social upheavals impact your operations, your applications will automatically be updated to help you better navigate uncertain times.
4. Easy integrations
Cloud-based applications use APIs to seamlessly communicate with different systems and applications. So why should you care? Well, in a nutshell, it means that you never need to worry about your various systems not speaking to another. You do not have to forsake your current system — cloud-native applications will easily integrate with your existing software.
Avoid lengthy, complex integrations and immediately get to work. Ensure that your tech stack operates as one comprehensive unit — instead of disparate, separate tools. Link up your email messaging platform, CRM, and collections management software in just a few clicks.
It is time to embrace cloud computing
For many years, there has been an either/or choice when it comes to cloud-native applications versus on-premise software. Now, there is only one option: embracing the cloud.
Not only are cloud-native applications more flexible, cheaper, and easier to get up and running, but they also change with the times. By implementing cloud-native collections management software, you will work with a tool that automatically gets better over time without you even having to lift a finger.
Keen to hear more about receeve’s revolutionary cloud-native collections management software? Have a chat with one of our experts today.
