Cloud Computing for Hotelier

We based our third article on an interview of Anthony Lee, partner at Flatgate LLP. 
This interview, published by Hotel-industry.co.uk, is useful to understand why some hoteliers remain sceptical about cloud computing technology.

Please find below the reference of the article we chose: 

"Cloud Computing for Hoteliers", published on April 2012 and retrieved from http://www.hotel-industry.co.uk/2012/04/cloud-computing-for-hoteliers

1. A technological breakthrough benefiting the hospitality industry.

As a major innovation, the global could-computing market will generate more than 150 billion dollars in 2014.  Anthony Lee defined this new technology as following: “cloud computing means using remote computers to host software and store data which can then be accessed over the internet or other data network “.

Nowadays many hoteliers benefit from placing their key business processes in cloud-based software. As we have seen before - with the case of the IHG group - one of the stakeholders of the hospitality industry has already embraced the use of advanced analytics and cloud computing for economic and operational reasons.

However, there is still uncertainty regarding the benefits and risks about cloud computing. Therefore, several companies remain sceptical about investing in this new technology.

2. How to prevent risks arising from cloud computing. 

Hoteliers must consider some risks when they move through a cloud-based strategy.

First of all, hotels are in charge of ensuring the security of customers’ personal data. A blind trust, based on exchange and interactions, between the provider and hotelier is mandatory.

The supplier of cloud computing solutions has to use secure facilities and must be prepared to hack attacks. As long as privacy laws are at stake, hoteliers have to carefully set up contracts with their suppliers. The contract must be easy to suspend and terminate if necessary. Moreover, the company running the cloud service usually provides an assurance to the hotel, in order to protect its interest in the case of a leak of personal information.

Another concern, linked to data protection, is the transfer of personal data from a country to another. As an example, exporting data from Europe to USA can be a source of risk because law regulations are different. US state agencies can actually have access to customers data without the company agreement.  The risk can be handled by suppliers but once again; this concern must be discussed when setting up the contract. 

ऀTo conclude, for any business, but especially hoteliers, please find the questions to ask the service provider before investing in this tool. The uses for cloud applications, the cloud support, terms and conditions and cloud security are concerns that must be taken into account with a lot of attention.

As long as these risks are measured and well managed through a reasonable contract, hoteliers can start to take advantage of the multiple benefits offered by the cloud computing.  They are now able to extend the life of their existing systems, reduce upgrades costs and finally convert capital expenditure to operational expenditures.

Marie Astrid Barral & Baptiste Lignel

References of additional articles used:

• http://www.hospitalitynet.org/news/4051622.html

• http://www.smallbusiness.co.uk/running-a-business/technology-in-business/2225868/questions-small-businesses-should-ask-about-cloud-computing-cloud-applications-support-and-security.thtml