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IN DEPTH: Technology

Many dealers back up their data to the cloud, providing an entry point for the concept, Computer Associates’ Sullivan points out. “They’re skeptical of giving the cloud too much control of what happens on a daily basis, so it will take time to move in that direction. Cloud computing has been costly to implement to date, but the costs are beginning to come down, so that will make it more attractive to look at. But complete adoption is still a ways off.”

Cloud computing isn’t being considered for memory-heavy applications such as estimating or design programs. “Nobody is asking us for cloud capabilities, and we are not working in the cloud,” says Braven Blackwell, president of Seljax. “We don’t see the advantages that it offers to our customers.” Greg Lentz, president of PrebuiltML, agrees. “We expect customers will want more flexibility in performing actual measurements via cloud computing, but it is not in high demand now. By the time customers want it, we’ll be ready to provide it.”

E-commerce applications also are gaining interest, but not fast enough, ECi’s Harkness says. “We as manufacturers haven’t done a great job of educating customers on the piece of the pie they’re missing by not offering this service.” In part, that’s happened because building materials aren’t typically bought online, he notes.

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Purchasing products online has been extended to dealers through systems such as Woodbrowser, which connects dealers’ buyers directly with mills.

“There is already a segment of current purchasers ready to utilize an online platform for price discovery and negotiation,” Hagerty says. “These purchasers see our system and understand the benefits of a transparent link to the mills, and they are interested in learning more.”

Security Concerns

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Cloud computing and e-commerce applications have some dealers concerned about security, as high-profile reports of big-box retailers being hacked have proliferated. But many dealers figure they’re below the radar. “With the recent security breaches around credit card processing, dealers are becoming increasingly interested in security,” Epicor’s Rigby says. “Dealers are seeing that it’s not just the big guys that are being targeted, and we are seeing dealers invest in new levels of security to ensure that they will be protected. They also realize they have a part to play in security, with simple things like strong passwords and regular data audits.”

Adds DMSi’s Bolstad, “When it comes to security, I wish I heard it more from dealers. We see it as a concern. We don’t want to alarm customers, but we want them to be aware of the issues.”

“Interest in improved security is coming,” ECi’s Harkness says. “The rules are changing, and dealers will have to be concerned that they’re meeting the requirements.” Those rules involve the international Europay, Mastercard and Visa (EMV) standards for credit card security. As of October 2015, retailers who aren’t EMV-compliant will be responsible for any losses due to fraudulent charges. “More dealers are investing in devices that support EMV-enabled P2PR (Point-to-Point Encrypted) terminals,” Rigby says.

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