Tech2Go Episode 8 - Virtualization and the Past and Future of Payroll

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Tech2Go is a fast-paced roundtable discussion with Executive Editor Gregory L. LaFollette, CPA.CITP, and regular columnists Brent Goodfellow, Dave McClure and Randy Johnston. These thought leaders tackle current technology issues impacting the tax and accounting profession. This month, the panel discusses the past and future of Payroll, the VMWare IPO, and Virtualization. [Running time is 1:01:43]

Gregory L. Lafollette Gregory L. LaFollette CPA.CITP
Brent Goodfellow Brent Goodfellow CPA.CITP, MCSE, MST, MCT
Dave McClure Dave McClure
Randy Johnston Randy Johnston
Tech2Go Show Notes
  • Thanks to our Sponsor: ADP ADP - Automatic Data Processing, Inc.
  • Payroll
    • Payroll preparation transitioned from accounting profession exclusivity to businesses like and who offer payroll processing services to others as a business in the late 70’s and early 80s.
    • Advances in technology have allowed accounting firms back in the payroll business.
    • This competition has resulted in payroll industry companies offering to “partner† with accounting firms to offer payroll services to their clients.
    • Pay cards
      • Loadable pay cards that can be used as debit cards
      • Useful for paying employees who do not have bank accounts
      • As many as 20-25% of employees are “un-banked†
      • Employees can use the cards for purchases or at ATMs to get cash
      • Eliminates the need for paper checks
      • Allows everyone to be paid electronically through ACH transactions
    • Online Payroll options like
      • Increasing availability of online payroll options
      • Very accessible, elegant, and convenient
    • Payroll becoming much more streamlined and simpler to use, making it much more profitable and lucrative for CPAs to offer their clients
  • VMWare IPO
    • Virtualization technology with relatively few current competitors
    • Valued at around $20 billion
  • Virtualization
    • Microsoft Virtual PC 2007 - Virtual Console
      • “New† button opens a wizard that walks you through setting up a virtual machine
      • You can install an operating system on your blank virtual machine – it is treated like an entirely separate computer
      • Install all the applications and programs you want, just like you would a brand new computer
      • Backup the copy and save the file to an external source
    • Virtualizing Servers
      • One physical server instead of multiple physical servers
      • Single server that is the host for several virtual servers
      • Save money by avoiding the need for multiple expensive servers
    • VMWare []
      • A little more “mature† than other existing products
      • Can convert Microsoft Virtual PC containers (as well as others) to VMWare containers that are much smaller in overall filesize
      • Free evaluations of all products
      • VMWare Server is a free download
    • Network Application Sharing
      • Citrix Method – [ ]
        • Thin-client with most of the processing on the server
        • Applications and all data is held on the server
        • Client connects to server and sends “clicks† and “keystrokes†
        • Server performs the actions and sends screenshots back of what has happened
      • Softricity Method – [ ]
        • “Softgrid† server has “sequencers† that extract all the application-specific settings and sends little pieces of the application to the client as needed
        • All the work is done on the local machine, just as if the application were installed on the local machine
        • Local machine caches application information to run faster
        • Now that Microsoft own it, it can be integrated with Windows user roles and permissions
    • Next episode of Tech2Go will be recorded LIVE at on Monday, September 17th at 2:30pm CDT. If sign up for a [free] Talkshoe account you can join us!! We’d love to have you.
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