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The Connected Business of Insurance

Top 3 Cloud Myths – What Does it Mean to You?

December 15, 2014

by Tim Sander

Top 3 Cloud Myths_Applied Systems BlogAccording to a new forecast from International Data Corporation (IDC), public IT cloud services spending will reach $56.6 billion by the end of 2014 and grow to more than $127 billion by 2018. While demand and spending for cloud services continues to trend upward, there still remains mystery and confusion surrounding the technology among some business and IT stakeholders.

Gartner recently highlighted some of the most discussed myths about the cloud, so I took a closer look at the top three myths that could potentially mislead your agency/brokerage.

MYTH1The Cloud is Less Secure than On-Premises Capabilities
Gartner says: “Cloud computing is perceived as less secure. To date, there have been very few security breaches in the public cloud — most breaches continue to involve on-premises data center environments.”

Applied’s advice: In today’s more digitally connected world, maintaining security and access to critical business information is a top business priority. With a cloud system, your critical applications and data reside in a secure data center. Our data centers deliver redundancy for power and Internet access, and a physical infrastructure that offers greater protection from natural and man-made disasters and other unpredictable business interruptions. With 99.9% uptime, Applied data centers deliver both data security and business continuity. Most locally deployed environments do not have dedicated security professionals that are monitoring the health and safety of the data. Just having a firewall is no longer sufficient. It is necessary to maintain a comprehensive security program with multiple layers of defense and monitoring. Applied has this multi-layer approach and professionals that are looking out for the interest of all data that resides in the Applied Cloud.

MYTH2The Cloud is Always About Money
Gartner says: “While it’s sometimes the case that the cloud always saves money, there are many other reasons cited for migrating to the cloud, the most common of which is for agility. Saving money may end up one of the benefits, but it should not be taken for granted.”

Applied’s advice: A cloud solution eliminates many requirements for hardware and software on premises and additional personnel to manage IT infrastructure. This frees up more time and money for core insurance activities like selling insurance. Additionally, your Internet-based applications and software update automatically with the cloud, so your business continually runs the latest applications without incurring delays or extra expenses that may be required with a manual updates. The cloud can deliver both cost savings and business agility.

MYTH3Migrating to The Cloud Means You Automatically Get All Cloud Characteristics
Gartner says: “Cloud computing has unique attributes and characteristics. Gartner’s cloud attributes include scalability and elasticity; they use service-based (and self-service) Internet technologies; they are shared (and uniform) and metered by use. The most common use case for the cloud, however, is new applications.”

Applied’s advice: The flexibility of a cloud solution can be ideal for insurance agencies that need to scale their business quickly to meet changing needs such as a business acquisition or rapid growth. The cloud eliminates the additional time and expense it takes to add or integrate new IT capacity, including applications. Since applications are hosted remotely in data centers and accessible via the Internet, your agents, CSRs, producers and others can access complete client information – anywhere, anytime – enabling them to provide clients faster service with greater flexibility that can lead to higher productivity. With Applied Cloud, agencies and brokerages benefit from more deterministic pricing based on individual usage, providing static budgeting for agencies and brokerages that is difficult to determine in other cloud environments.

How are you embracing the cloud? Share your thoughts below.

Learn more about the benefits of the cloud >

Tim SanderTim Sander, senior vice president of IT, Cloud Services, heads global IT operations for Applied’s Cloud Hosting and corporate IT services. He began his Applied career in 1987 as a systems technician and has held numerous technical leadership roles, helping Applied to evaluate and transition to new technologies. Today Sander is responsible for the company’s corporate IT services and oversees the operations of Applied’s four global data centers.


My concern is the additional cost and being held hostage by data usage. The bigger we get and more files we store the more expensive it gets. Whereas in house I can make adjustments at a lower cost

Tim Sander

With AppliedOnline’s public cloud solution, we store and manage agencies complete agency management system data, including file attachments. As agencies grow the amount of data and file attachments within their system, we grow their server capacity to adequately manage and process their data at optimal speeds – without any additional cost.

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