If you are using an application through the Internet these days, chances are that this application is running in the “Cloud”. Cloud computing was popularized by Amazon.com in the mid-2000s however, the concept of computer “time-sharing” dates to the 1960s. Cloud computing is the on-demand availability of computer system resources without direct active management by the user.
In recent years, this concept has become very popular with many software providers as it allows them to provide their applications as services running on remote servers without the worries of having to operate their own datacenters. This method of delivering applications is called Software as a Service or the SaaS model.
Cloud based applications have made their place and gained trust among different industries including Transportation and Logistics. In 2019, the annual Inbound Logistics journal conducted surveys to better understand the Cloud solution market. The top three industries that the cloud solution is serving are: transportation (93%), manufacturing (82%) and retail (79%).
Cloud solutions’ accessibility: the key to real-time, easily manageable data
An advantage of cloud solutions is that they are accessible from anywhere, at any time: on a mobile, a laptop, or even on a tablet, as long as there is an internet connection. It allows for a greater transparency in the industry as every element is monitored and all stakeholders can have access to the cloud. Universal accessibility makes processes that need an all-time oversight easier to manage.
Why security is so important, and how to be assured data is safe
As the cloud logistics software market is expanding at a high pace, it is also facing some key concerns: security, system reliability, privacy concerns and backup plans are questioned by organizations.
To address the security and data privacy concerns with Cloud solutions, the American Institute of Certified Public Accountants (AICPA) established a certification called “System and Organization Controls” (SOC), a suite of reports based on the SSAE 18 auditing standard.
There are three types of reports for service organizations and the one designed for Cloud solution providers is the SOC 2 report. There are five Trust Services Principles, or criteria, that comprise a SOC 2 report: Security, Availability, Processing Integrity, Confidentiality and Privacy.
The SOC 2 Type 1 report describes the systems and controls that have been put in place to adhere to the five Principles. The SOC 2 Type 2 report goes further in determining the efficiency of the controls over a period of time. For the Cloud solution provider to be certified, they must go through an audit performed by an accounting firm accredited by the AICPA and be found compliant with the systems and controls described in their report. The auditing firm then signs the report and may issue a compliance certificate.
Cloud computing has underpinned the world’s economy, global supply chains and remote workforces during the coronavirus pandemic and will continue to be an essential target for organizations looking for increased scalability, business continuity and cost efficiency in 2021.
It is powerful, expansive, and extremely cost-effective providing continuous benefits for both the host supplier and the customer. Jean-Philippe Lavallée, CEO of Nomadis says ”The future is now in the continued advancement of remote Workforce Logistics. We would not be supporting clients seamlessly globally from remote locations in Africa to South America and Alaska to the Arctic without Cloud computing and SOC compliance”.