In today’s computing economy, everyone knows the advantages of the Cloud over traditional storage methods. Cloud computing drives down cost by helping clients avoid large capital expenditure upgrades and other hardware costs. The Cloud can also improve overall cost efficiency by more closely matching cost patterns to actual revenue/demand patterns, which helps move businesses toward an Opex model — instead of an outdated capital-intensive cost model. Cloud computing also helps coping with demand, as the Cloud environment can better grow with your business than traditional hardware options. When demand is unpredictable or suddenly spikes, or when you need to test a new application, the Cloud grants you the ability to spin capacity up or down, while paying only for what you actually use. The Cloud allows users to scale services to fit their individual needs, allows them to customize applications, and grants access to content from anywhere with an Internet connection.
In the business world, countless factors are driving Cloud adoption. According to market researchers at Vanson Bourne, a recent report called “The Business Impact of the Cloud” compiled insights from interviews of 460 senior decision-makers within the finance functions of various enterprises.Focused on highlighting the quantifiable improvements a number of these companies have achieved by adopting Cloud services, the report shows how the tech significantly improved productivity and time to market, as well as lowering cost. The report goes on to point out that companies that adopted such services noticed a whopping 20.66% average improvement in time to market, along with an 18.8% average increase in process efficiency, and a considerable 15.07% reduction in IT spending. Crunch those numbers and anyone can see that these benefits led to a 19.63% increase in company growth overall.
With Cloud computing dominating the current tech landscape, many are overlooking the problems that unfortunately come hand in hand with massive growth. The major downside to Cloud computing is it can be accessed by anyone with the right passwords or security codes. If the information stored is sensitive, or if it is being used for military applications, it is vital to take all the necessary precautions to safeguard the content against a breech or other cyber threat. This is why dual-use and controlled-use goods (such as Cloud-based IT equipment) undergo heavy scrutiny and inspection whenever they arrive at a country’s border. As they must be trusted to transmit a secure signal, the customs authorities must verify that the tech itself is compliant with the laws of the land. For companies that resell this technology, it becomes an increasingly complex and bureaucratic process to ship this equipment overseas.
Customs law is different in every country and can confuse even logistics experts. Customs law varies so considerably that without experience or familiarity with guidelines of each and every country your IT hardware might pass through, oversights can and do occur — often at great financial and time costs. In fact, most countries won’t allow these kinds of sensitive materials over the border at all without a local entity to take responsibility for the goods. For a company leasing or reselling technology while retaining ownership over it, most countries additionally require a third-party Importer of Record (IoR) to act as the consignee on the shipping documents.
In any business, speed and precision are paramount. If your Cloud-based IT client relies on you to ship their dual-use goods quickly and without hiccups at the border, it pays to not only find an Importer of Record to process your goods through customs, but also to recuperate any unnecessary bills, taxes, or levies applied at the border. The right third-party global value-added supply chain partner will confirm the accuracy of your documents; ensuring that your freightwaybill, commercial invoice, and other documents are in order and helping you to secure any additional certifications and permits.
Preparing these papers and permits can become involved and time-consuming, as even a small neglected detail on any one of the numerous important documents can hold a shipment up at customs. These delays are often costly and inconvenient, putting both the reseller and their client at a loss. This is why a global distribution partner such as TecEx importer of records services who specializes in successfully transferring IT equipment from one nation to another,can save tech resellers and their Cloud clients time and money by offering the best lead times. What makes these IT distribution partners unique is that they can also obtain their clients a Value-Added Tax Refund from the countries that offer such a refund.
Cloud-based computing companies deliver a wide array of services to their global consumers, but they rely on you, the IT reseller to deliver the physical goods to their destinations in order to make this service possible, and of course, they expect this equipment to arrive on time, without any additional or unanticipated costs. If you are a technology reseller and you want to stay in good standing with your clients, consider utilizing the expertise of a global IT supply chain partner familiar with the legion of differingregulations, laws, and exceptions that meet dual-use packages at many borders around the world.