Since my background was computer engineering before I got into printing, so I think I can add some insight to this discussion.
Cloud software is great. You don't have to upfront purchase any large software packages, as most cloud software you can "rent" on a monthly basis. You don't have to worry about the hardware or infrastructure to get that software running. You don't have to worry about cooling or power issues for those servers, and you don't have to worry about backups (in theory!). If you add new computers to your print shop, you don't have to hire a techy to come install all that software as you can easily point it to the cloud. CloudPrePressXYZ, as I'll call it, could even generate live PDF previews for clients, and send them out automatically. Wouldn't that be neat!
But in reality, unless you're a grandma who uses Office Live to write recipe cards, or a student who doesn't have their own computer, or a myriad of other genuine users of cloud software, its better to stick to terra firma computing.
Bandwidth: In a print shop, cloud software really doesn't work, except for maybe spreadsheets and documents. In pre-press, its not uncommon to handle files ranging from hundreds of megs to several gigs. Imagine having to upload all that to the cloud FIRST before you can even start to process it. Average business internet connections feature a 1 megabit upload speed, as most traffic is downstream and not upstream. A 500 meg file would take about 30 minutes to upload to the cloud. And thats ONE file at a time. If you have multuple pre-press techs, they would have to wait till the first one was done. First in, first out. In that same 30 minutes on terra firma you can already have sent plates to output.
Storage: Right now fictitious PrintShopXYZ has several terabytes of backups of previous jobs. On average, a full color poster job can be several gigs, and they design and print several a month. In the cloud, you're paying for storage, so you have to decide to either keep job files in the cloud incase you need to re-print or make a change, or if you delete them to save space, and re-upload them when you need them. If you choose the later, then you will need to spend time and bandwidth to re-upload the files in the event you need to make changes or do a re-order. People take for granted that cloud storage will always be there; don't count on it. If its in the cloud, its volatile. So you still have to keep a local copy (or two).
Security: This, my friends, is where the lawyers get involved when things go bad. As an industry insider for many years, I can tell you that more often than not an online service or site is designed from the ground up with features and functionality being the primary driving force, and security is slapped on the top when its done. This is a widespread industry practice, but can lead to problems down the road as people discover loopholes. Gmail has been compromised before, so has virtually every webmail platform. If enough people use CloudPrePressXYZ, eventually some nefarious user will figure out how to compromise it. If you client base varies widely, having someone with ill intentions gain access to your client base and more importantly THEIR FILES, could have widespread legal implications. Often PrintShopXYZ will do work for competing companies or campaign. That would be a PR nightmare if Obama found out you also printed for McCain! Worse would be if PrintShopXYZ printed government jobs, or bank jobs. That could literally end a business.
Reliability and Performance: Assuming that bandwidth isn't an issue, storage isn't an issue, and security is handled by Mr. T, we still need to look at reliability and performance. How often does your internet connection go down? Thats now pre-press downtime also. How fast does CloudPrePressXYZ process a file? How often do they upgrade their servers. If you had a shiny new 8 core desktop, how would the speed compare? Whats their uptime reliability? How long from start of upload to finished pre-press file does it take compared to the old way?
In conclusion, while cloud software may be good for photo sharing, facebook and tweeting, enterprise applications are still best left in the enterprise. While you may save a lot on the initial purchase price, the ongoing monthly fees, increased bandwidth requirements, and waiting time will often quickly absorb those gains, and result in a serious net loss.
When it comes down to it; security is THE MAJOR concern. Will your cloud platform be compromised? Yes. Either it will be, or may already have been, and you just don't know about it. While many people find it easy to use cloud apps like QuickBooks or OfficeLive, you don't want crucial info to be dangling around like a cyber carrot. Physical security of your office is much easier to manage. Yes, a criminal could break in and steal your servers and backup drives, but thats far less likely. In the cyberworld, its like the entire planet is outside your office door, all trying their keys. It only takes one to work, and your pawned...