- Posted by Sejal
- On April 10, 2017
The costs and performance aspects associated with Cloud ascertain that it is no longer a question of whether Insurance companies should migrate to the Cloud, but rather what to move, when and how the move should happen. However, when considering to take the initiative, security and privacy of data remain the primary concerns which are preventing Insurers from gaining the benefits of Cloud.
To alleviate these concerns, it is important for Insurers to understand that Cloud is not a destination, but rather a comprehensive journey which will digitally transform their business, every step of the way. And on this journey, security of data can be tackled by initially migrating those data which are less sensitive and shifting to more complex ones, as and when, they gain more confidence riding the Cloud.
Based upon our experience, we know that there is no one-size-fits-all; each Insurer has their own set of expectations from the Cloud, however, there are certain key steps that Insurance companies can take to better approach the Cloud and capitalise upon what it can offer.
1. Assess the current business applications and IT infrastructure, and create a list of appropriate workloads to migrate to the Cloud, in terms of priority. Also, analyse the potential migration impacts.
In the prioritised list, you (as the Insurer) can identify to first move to Cloud those data which are less sensitive. This implies that security, privacy of data and regulatory concerns will contribute immensely in distinguishing which applications can be migrated and those which should not be moved.
In addition, if you are planning to implement a business application; such as an Accounting Package or CRM and want to avoid the upfront hardware costs, software, maintenance and data center costs which are associated, then the best alternative would be to host your business applications to Cloud and benefit from reliability, scalability, higher security levels and efficiency.
Another factor worth considering is the lifecycle of your server. If you know that your on-premise server has to undergo its retirement in next few years, then instead of moving the on-premise resources to new hardware and get involve in another upfront investment, this could be a major consideration of moving to the Cloud.
2. Implementing a Cloud Governance model
IT and departmental leaders should not work in isolation of one another.
Through the implementation of a Cloud Governance model, IT executives and the business will be able to join forces and define the most appropriate strategy for the deployment, migration and management of Cloud services. By administering these specific areas, it will be possible for IT to handle the Cloud services put in place and convert them into advantages, assets for the companies, rather than just being liabilities.
The Cloud Governance model will cover three pillars; namely people, process and technology, and embrace the entire cloud life cycle.
3. Quantify the business value of Cloud
Ensure that business needs are aligned to IT, prior to implementation of cloud services, to be able to determine what are the business values. Cloud success should be measured by use of the business KPIs, to make sure that, the Cloud effort is more of a technology-enabled transformation of the business and not merely as a technology project.
4. Scrutinise your expectations
To ensure that you are choosing the right Cloud Service Provider and that your expectations are achieved, businesses should properly inspect service-level agreements (SLAs). It is very important to verify that not only the Cloud Service Providers gain from the SLA, but it also safeguard your business. An effective SLA should establish very vital elements such as: availability, performance, security / privacy of the data, business continuity, location of the data, access to the data, portability of the data, process to identify problems and resolution expectations, change management process, dispute mediation process and termination with smooth transition.
5. Choice of Cloud provider and evaluation
It is important to be careful when choosing your Cloud Service Provider. Ensure that the provider completely understand your business and the specific goals that you want to achieve through Cloud. If the provider is more focused towards only technology results, then the technology being delivered might be excellent but possibly will not be relevant to your business. Opt for a provider who can demonstrate to you the advantages that your business will gain through its service, and most importantly how it can bring solutions which overcome your pain points / satisfy your business needs.
After having made your choice and even if you are happy with your current selection, do continuously evaluate the provider in terms of the reliability, the performance you need. Also, assess if the right technical experts are involved.
Eureka! You have learnt the steps.
Let's kick-start your Cloud journey.
The above-mentioned are key steps that you, as an Insurer, must take together, on the journey to become cloud empowered, and this journey is one which The Cloud Factory can ride with you, every step of the way.
The Cloud Factory can help you analyse the power of Cloud and embrace it with confidence. From boosting your business agility, helping to compete with business rivals by strengthening innovation, delivering faster time to market to reducing infrastructure costs, our experts can help you make most of the Cloud to meet your business objectives and match your customers’ needs with the best solutions.