Server vs cloud: What every insurance broker needs to know about their technology choice
When it comes to choosing technology for your brokerage, the decision between server-based and cloud-based software will shape how your…
When it comes to choosing technology for your brokerage, the decision between server-based and cloud-based software will shape how your business operates, grows, and competes for years to come.
Think of it like choosing between keeping all your client files in a filing cabinet in your office versus storing them in a high-security vault with 24/7 access from anywhere. Both options store your documents, but only one positions your business for the future.
Server-based software runs on physical hardware in your office. You own the servers, manage the maintenance, and handle all the security yourself. It’s like having your own power generator, while you have complete control, you’re also responsible for everything that can go wrong.
Cloud-based software runs on shared infrastructure managed by technology experts. Accessed through the internet, just like you would Netflix or your online banking. The difference is that instead of entertainment or banking services, you’re accessing your broker management platform.
Not all “cloud” solutions are created equal.
Many software providers claim to offer “cloud” solutions, but there’s a crucial distinction to understand:
Cloud-hosted: This is like taking an old petrol car and retrofitting it with an electric motor. The software was originally designed for servers and has simply been moved to a data centre. You still need clunky VPN connections. A VPN is a secure ‘tunnel’ that lets you connect your device to the server safely over the internet, so it doesn’t leverage modern cloud benefits.
True cloud-native: Think of this like a Tesla – designed from the ground up for its environment. True cloud software is built specifically for the cloud, offering seamless access, automatic scaling, and modern security without the need for VPNs.
One of the biggest concerns we hear from brokers is: “Is my data really safer in the cloud?”
The answer is yes, and here’s why:
Cloud providers like Microsoft Azure invest billions annually in cybersecurity. They employ world-class security experts and implement sophisticated threat detection systems that would be impossible for individual brokerages to match.
JAVLN Officetech Cloud, for example, leverages Microsoft Azure’s enterprise-grade security infrastructure with data centres right here in Australia. Your data stays within Australian borders while benefiting from globally recognised security measures.
While your office server might only receive attention during business hours, cloud platforms operate with round-the-clock monitoring and instant response systems. It’s like having a security team that never sleeps.
Perhaps most importantly, cloud-based software receives continuous security updates. Vulnerabilities are often patched before they can be exploited. With server-based systems, security updates depend on your IT team’s schedule, creating dangerous gaps.
Modern cloud solutions come standard with features that would require significant investment for server-based systems:
Server-based software might seem cheaper upfront, but the total cost tells a different story. It’s like an iceberg, most of the expenses are hidden beneath the surface.
Cloud solutions operate on a transparent subscription model with predictable monthly or annual fees that include:
Server-based: Limited to office access or clunky VPN connections that can be slow and unreliable, especially for remote workers or when travelling.
True cloud: Seamless access from any device with an internet connection. Your team can work from anywhere with the same fast, reliable experience.
Server-based: Adding new users or expanding capacity requires purchasing additional hardware and manual configuration. Growth is expensive and slow.
True cloud: Automatic scaling based on your needs. Add new team members instantly without worrying about server capacity.
Server-based: If your server fails or your office experiences issues, your business stops. Disaster recovery requires significant additional investment.
True cloud: Built-in redundancy across multiple data centres means your business keeps running even if one location experiences problems.
For Australian and New Zealand insurance brokers, compliance isn’t optional. Cloud providers maintain strict adherence to global standards including:
These provide assurance that your technology meets the highest security standards expected in the insurance industry.
The decision between server-based and cloud-based software isn’t just about technology – it’s about positioning your business for the future.
Consider these questions:
While server-based software might offer the illusion of control and lower upfront costs, cloud-based platforms provide superior security, predictable costs, and the flexibility to grow with your business.
Think of it this way: You wouldn’t store your clients’ important documents in an unsecured filing cabinet without climate control or backup copies. Similarly, entrusting your digital operations to dedicated cloud security experts, rather than managing everything in-house, is simply the more prudent choice.
Moving to a true cloud platform like JAVLN Officetech Cloud is an investment in your security, efficiency, and future growth. Built with SOC 2 Type 2 compliance, it provides the enterprise-grade security and local data sovereignty that Australian and New Zealand insurance brokerages require.
