3 Myths About SaaS Insurance Software Solutions

Cloud computing provides the ability to access the cloud and run selected solutions via an on-demand platform. This approach combines industry-leading security with significant innovation in virtualization and rapid deployment to simplify business operations and improve business profitability. SaaS/Cloud platforms have no need to be installed or purchase additional hardware. This offers many additional benefits such as reducing upfront costs and increasing speed to market. It also minimizes ongoing maintenance costs. The software is accessible from any device, anytime. The SaaS provider handles all the details. ?

Multi-tenancy is a key feature of SaaS. Multi-tenancy is when a provider of SaaS provides a single, well-architected solution to multiple clients. This reduces the amount of resources required to maintain each copy. The SaaS provider’s service costs are typically less than those associated with traditional model licensing. The SaaS model removes the need for businesses to manage installation, setup, and/or maintenance. This allows the SaaS provider to pass on significant savings to their customers.

SaaS is often confused with “Hosted Applications” or “Application Service Provider (ASP). These are both similar, but have significant differences. SaaS is different from ASP in that the customer does not get a license to use the application, but rather access to certain business functions. These benefits can be realized in many different ways, depending on the industry and how the application is structured. An ASP or Hosted Application does not have a multi-tenant architecture. Each client has its own copy and it is run on the provider’s “tin”. This requires that the supplier supports multiple instances of the software and performs maintenance and upgrades for each client individually. This is a costly approach and must be passed onto the customer.

Let’s take a look at the main myths surrounding SaaS.

Question: What is stopping companies from using a SaaS platform to increase profits and save money

Myth 1. Myth #1. “My data must be stored in my basement to ensure its security.”

Many clients who are looking into SaaS solutions ask the same question: Is it safe? I’m concerned about the security and confidentiality of my data.

Every company places data security as a top priority. Is your data protected now? Companies often use free e-mail services, which can be dangerous and expose your data. What are the best ways to exchange data with trading partners or internal staff? Information leakage can also occur from servers located in your office. This is usually due to employees’ negligence or intentional. Are you conducting regular backups off-site? Are you able to have a disaster recovery location with a mirror copy of your data? If so, how much do monthly costs include this (clearly this is not in your basement).

Your data in SaaS solution are stored in highly secure data centers with 3 levels of access monitoring. Data is only transferred over encrypted channels. Customers should have access to their data and transmit it in a well-structured SaaS program. The data is also mirrored into and backed up into different data centers. Software vendors care about the information of their clients and it is in their best interests to ensure that this information is available in an unplanned emergency.

Myth #2: “SaaS” is a new, unproven method.

Businesses need to manage their risk, so they should be cautious about using unproven technology. Cloud computing has many different types of software today. These include virtual IP-ATC, corporate portals, accounting, custome relationship management and sales/prospect management software. SaaS is available for purchase at any price. SaaS is not a restriction on a customer’s use of the software solution. In fact, customers can make modifications and adapt SaaS to meet their specific needs just like they would with an “on-premise” solution.

Myth #3: Traditional on-premise software licensing is more affordable than SaaS.

Some people suggest that SaaS is more cost-effective than traditional on-premise software licensing over the next 3-5 years.

Important to remember that we are only referring to the license cost, and not the indirect costs. Also, it is important to talk about the TCO (Total cost of ownership) which includes the cost of hardware (servers), ongoing hardware service, deployment, personnel (to include all initial deployment and updates), software upgrades, maintenance of disaster recovery sites, electricity, and other costs. The TCO of the SaaS and the classic scheme is approximately 60%. SaaS is always the latest version, so you can take advantage of all its features and any insights gleaned from a large client base. ).