At places I visit, I find that many of the local folks comment about the weather: "If you don't like it, wait 10 minutes and it'll change." The same can be said about technology: Every few years there's a new gadget or system or approach to leveraging technology that's the latest crave.
Recently the hottest topic has been how to use social networking to build relationships with your customers and staff. Another big topic of discussion is cloud computing–a cool new name for something that's been around in one form or another for awhile.
Very simply, cloud computing features a virtual operating platform and applications that reside somewhere on the Internet (often depicted as a cloud in charts). Some of you might be thinking that this sounds very familiar, and you would be right. Several years ago, many companies touted themselves as being application service providers (ASPs). Using an ASP model, the company provided applications over a network often called on demand software or software as a service (SaaS).
As technology evolves, with faster processing speed, greater storage capacity and more intuitive user interfaces, the opportunities for cloud computing continue to grow. With the overabundance of mobile devices and the widespread leveraging of Web 2.0 potential, cloud computing has the capability of offering an anytime, anywhere, any way environment.
But although cloud computing may just be new wrapping paper on an old gift, it also represents some advances in functionality, security and ease of use. For independent agents, the same concerns about data back in the ASP days still exist. Let's discuss why you might consider shifting your technology to the clouds.
Benefits
I don't need to tell you how many agents and agency principals sometimes feel more like IT professionals than insurance professionals. The demands of maintaining agency management systems, rating systems, accounting systems, etc. can be overwhelming for even the largest, most sophisticated agency.
Ensuring that all of your computers are on the latest versions of all the software you use and training your staff, can be a full-time job. So the idea of outsourcing that to a cloud company is awfully appealing.
With cloud computing, all you need is a browser and access to the Internet. Worrying about a virtual private network to get into your office systems while you're on the road or at a client's office is a thing of the past.
Also, if you've ever experienced incompatibility issues when you've tried to share data between disparate systems, that won't be your problem anymore. Cloud computing offers complete integration of systems and applications customized to fit your agency's particular workflow.
As your agency grows, so does your cloud. One of the more distinct features of cloud computing overcomes something challenging and frustrating for IT professionals: the ability to quickly respond to changing needs. With cloud computing, new products or services can be added without the usual accompanying investment in new infrastructure, training or software licensing. Most cloud computing agreements are on a subscription or pay-per-use basis that, in real time over the Internet, can respond to your changing needs.
In addition, many agency management system vendors offer products that are provided online or on a software as a service basis. They may or may not call it cloud computing, but the results and opportunities are the same.
One of the additional benefits of opting for a cloud computing approach is to help level the playing field from a technology standpoint. Regardless of your agency's size or degree of technology savvy, you can access the same technology and functionality as the biggest company, thereby offering your clients a wide range of online services. Running your agency shouldn't be about who has the best technology, but about who offers the best products at the best price with the best service.
Who has the data?
Many of the same concerns raised by agents with regard to the ASP model still exist with the cloud computing model. Before you consider going this route for your technology and systems needs, ask yourself some questions:
o Are my current systems and their respective vendor services working OK? To paraphrase: If it ain't broke, do I really have to fix it?
o Is my agency planning on expanding or adding to its product offerings?
o Is the time and cost of maintaining the agency's current technology draining my resources?
o Is my technology infrastructure budget too small to allow me to compete effectively?
Depending on how you answered these questions, you might find that cloud computing is for you, or maybe it is, but not right now.
If you've decided to jump on the bandwagon and shift to a cloud computing environment, let's look at a few of the questions you should be asking when looking for a vendor:
o Where is my data? Generally speaking, the vendor providing you the cloud also is storing your agency's data. But as with every good disaster recovery plan, you should be backing up your data on a frequent basis and storing it offsite, regardless of your technology system. Keeping a local copy of your backup to your own storage device is always an option, too. What happens if the vendor goes out of business? How will you go about getting your data back and in what format will it be returned to you?
o Who else might have access to my data? The vendor employs staff to manage its systems. Just as we're all concerned about security of our personal medical information, we should be concerned about the security of our business's data. You should question the cloud vendor about its internal hiring practices and management of those who have access to your information.
o What is the vendor's disaster recovery plan? How safe is your data? If a disaster strikes, how long until the vendor restores access to your data? What does its service level agreement state as its uptime percentage? Ideally, you want it to be up and running 99.9 percent of the time.
When considering different cloud computing providers, look at all of the applications you would have access to, to ensure that your provider offers growth in the direction you're heading. If the vendor doesn't offer certain applications or services, find out if these are included in the vendor's long-term plans or if you can have them added when you need them and what the costs might be. Once you commit to a vendor, you don't want to have to jump through hoops for them to meet your future needs.
The decision to switch your agency's technology to cloud computing can enable your agency to be more competitive in today's tough market and make your company more efficient. Regardless of whether your technology forecast is cloudy or not, I hope your forecast is clear of confusion.
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