Five Benefits of True Cloud DMS Software - AutoSuccessOnline

Five Benefits of True Cloud DMS Software

True cloud software is built on the cloud for the cloud. This allows the software to take full advantage of inherent cloud computing features designed to maximize development and performance potential.

Cloud computing is changing the technology landscape at a rapid pace, including Dealer Management Systems (DMS) and associated third-party providers.

DMS solutions have come a long way from their first iterations that appeared in the 1980s. In the early days, dealer management systems required on-site servers and therefore demanded manual work from dealership personnel. Server-based DMS solutions require employees to perform system updates, daily data backups and other routine maintenance.

In an effort to remove the server from the dealership and eliminate these duties, some DMS providers moved to remote server farms, where the maintenance was done by the vendor or an outside company. However, just because a DMS is in a server farm and no longer onsite does not mean the software has been updated — it simply means the server is no longer at the dealership. While this may have alleviated the maintenance requirements, it consequently added new challenges, like the need for a Virtual Private Network (VPN) to communicate to the server farm.

With the new availability of true cloud software in the automotive industry, it is time to understand the benefits it can provide for your dealership. True cloud software is built on the cloud for the cloud. This allows the software to take full advantage of inherent cloud computing features designed to maximize development and performance potential.

Below are the five main advantages of true cloud software and why it’s a must-have for your dealership’s DMS.

1. Cloud Security
Security is more important than ever due to rapidly changing threats. Anything that relies on an internet connection is at risk of a security breach. True cloud security combats constant security threats with advanced security audits.

For example, Microsoft is constantly monitoring threats and making updates to protect their cloud computing technology, Microsoft Azure. According to Microsoft, 90 percent of Fortune 500 companies trust the Microsoft Cloud with their business. Microsoft Azure provides bank-level encryption whether it’s supporting a government entity or a small startup business. When accessing true cloud technology, it’s like accessing Google or Amazon, there is no need for an expensive VPN.

2. Geo-Redundancy
Businesses live and die by connectivity. If your server farm or VPN goes down, so does your dealership. Geo-redundancy service replicates data on two or more cloud locations and is able to instantly switch if one site goes down. True cloud allows businesses to stay secure and running if one site fails. If you’ve ever been working and your system goes down for several hours, you know how detrimental that can be to your dealership’s productivity.

3. Elastic Scalability
Before cloud computing, dealers had to add memory to their server-based systems to prepare for peak demands. Every time a dealership reached the peak capacity, they had to add more memory, an additional cost. True cloud software provides elastic scalability, which allows for additional resources to be easily added or reduced depending on demand. You no longer have to pay for additional resources when your dealership needs them.

4. Modern Development Tools
Modern development tools provided by true cloud computing lead to faster development. True cloud allows for faster application testing, so developers can test and scale applications much faster.

5. Built on the cloud, for the cloud
Software that is built for server-based platforms is limited, at the core, to the constraints of that specific technology and will increasingly cost more to maintain as time passes. When considering a new DMS, look deep into two key elements that significantly influence the final solution: 1) Is the DMS on a server in the dealership, on a server farm or in the cloud?  2) Is the old DMS software placed in a different location, or was it written in the cloud for the cloud, to truly take advantage of all modern tools?

You May Also Like

Unlock New Customers Using Cloud-Based Digitized Auto Lending

Today’s consumers don’t necessarily compare different lenders or dealers anymore; they compare experiences.

By Will Holleman, sales director, auto verification services on the Equifax Workforce Solutions automotive team

In a recent survey1, nearly 40% of dealers said they still are not investing in more digital resources for their retail and lending processes. Of these groups, approximately 31% said they don’t have the resources to invest more, 40% said they do not feel comfortable with the technology and 29% said they are actually comfortable with the digital business they’re currently getting.

Retain Staff with Career Development Training

If you are serious about recruiting top talent and improving employee retention, create a career development program.

Does Embedded Auto Insurance Impact Customer Spend at the Dealership?

Insurance marketplaces incorporated within the car-buying experience present buyers with competitive pricing.

An Unlimited Source for Pre-Owned Inventory: The Service Drive

Why are used vehicles in higher demand than other pre-owned vehicles in the market?

An Unlimited Source for Pre-Owned Inventory: The Service Drive
Don’t Let Stubborn Economic Beliefs Drive Your Advertising Strategy This Time

The advertising industry is smarter and more competitive these days. Dealers need a trusted advisor to navigate and succeed in this complex environment.

Other Posts

Dominion DMS to Showcase DMS Offering at NADA 2023

VUE is customizable. Dealers add only the tools they want, keeping their operations on track without paying for unnecessary applications.

Executive Spotlight with Guru Sankararaman of Tekion

Insights on modern DMS software, EVs, the current automotive market and more.

The Benefits of Google’s GA4 Update

Learn about what’s changing with Google’s incoming GA4 update, and also about the benefits that the update provides for dealerships.

google analytics
10 Ways to Increase Show Rates at Your Dealership

Utilizing these 10 strategies on a regular basis will increase show rates at your dealership.