Cloud-Based Technology: Four Common Questions

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Cloud-Based Technology: Four Common Questions

As traditional enterprise insurance software applications continue to take a back seat to Software as a Service (SaaS) through cloud-based technology, smaller insurance companies may be intrigued yet hesitant to commit to migrating to the cloud.

In an effort to ease the consternation associated with moving to the cloud, below are four questions that commonly arise regarding cloud-based technology along with answers that will hopefully help to clarify associated concerns.

What Is Cloud Computing?
Cloud computing generally refers to software and data that is stored in an off-premises location and accessed by means of the internet. These systems provide an innovative way for businesses to operate without the need to purchase expensive software as well as the hardware to run it.

Cloud, or SaaS, technology is being used across a broad sector of businesses and industries including insurance companies, retail enterprises, and construction companies.

Where Is The Data Stored?
The concept of storing data in a “cloud” may seem unsettling to some initially. In real life, clouds come and go and some may fear that their data may be just as unstable in a cloud.

The truth is that, despite the term “cloud”, the data is actually physically located on a real server in a tangible location. In a vast majority of instances, these servers are diligently maintained and monitored to ensure a level of data integrity that far surpasses those of private enterprises that try to maintain and protect their data on their own data-storage equipment.

Will The Cloud Replace IT?
At this time, it is difficult to say with any degree of certainty that IT employees should be worried about their jobs, but there is no denying the fact that the cloud is becoming more and more pervasive.
The good news for IT personnel is that the expansion of cloud technology may open new career opportunities with remote work environments.

What Type of Hardware is Needed?
With cloud systems, the data, as well as the platform that runs it, is accessed through a secure internet login. Therefore, the only device usually needed is one with internet access. This includes PC workstations as well as tablets and smartphones.
The flexibility and accessibility of these systems can greatly enhance the mobility of a company’s sales force, underwriting, claims processing and all other functions associated with the smaller insurance company.

Taking the First Step
The first step in the migration from enterprise insurance software to cloud-based technology is to find an experienced service provider for the smaller insurance company. The right provider can serve as a guide and advisor to finding the optimal system that best works for the company.