The Real Cost of On-Premise vs. Cloud Insurance Software
- Nov 25, 2024
- Views: 163
Emma Scoringe, CMO, JAVLN
When choosing between server-based and cloud-based software, cost may be the first consideration. Server-based software may seem more affordable upfront, the long-term costs can add up like an iceberg, hiding most of its bulk beneath the surface.
When choosing between server-based and cloud-based software, cost may be the first consideration. Server-based software may seem more affordable upfront, the long-term costs can add up like an iceberg, hiding most of its bulk beneath the surface.
Breaking Down the Costs
With server-based tech, initial expenses are straightforward: you pay for the hardware, software licences and IT support. But hidden costs like maintenance, unexpected repairs and cooling rooms for servers can mount quickly and you might need managed services like security and backups.
Cloud technology operates on a subscription-based model. Meaning you pay a predictable monthly or annual fee and avoid any headaches of hardware maintenance. You’ll also get automatic updates and ongoing support, to keep your business running smoothly without the need for costly upgrades.
Why Cloud is More Cost-Effective in the Long Run
Over time, the total cost of ownership for cloud software is significantly lower than server-based software. With the cloud, you save on hardware, IT costs and unexpected expenses, while investing in software that scales with your business.
Ensuring Security and Efficiency
Regular updates for your cloud solution is like updating your phone — each update improves security and adds new features to make the system better. With cloud, updates happen regularly to keep your business safe and running without manual installations.
Supporting a Customer-Centric Model
Moving to the cloud supports a customer-centric business model, where the team spends less time on admin and more time focusing on delivering value to clients. Cloud policy management platforms give easy access to real-time data, so insurance brokers can respond quickly to clients.
Gain a Competitive Advantage
Leveraging cloud technology gives an advantage. It allows you to stay agile, adapt to industry changes and outperform competitors who may still be limited by server-based systems.
Choosing cloud-based software over on-premise technology isn’t just about cost — it’s about future-proofing your brokerage, just like keeping your phone secure with the latest updates.
General Advice Warning: This advice is general and does not take into account your objectives, financial situation or needs. You should consider whether the advice is appropriate for you and your personal circumstances. Before you make any decision about whether to acquire a certain product, you should obtain and read the relevant product disclosure statement.
All information above has been provided by the author.
All information above has been provided by the author.
JAVLN, ABN 633801519
This article originally appeared on JAVLN website and has been published here with permission.
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