According to a recent report 74% of large and mid-sized enterprises say cloud technology has provided them with a competitive advantage in the market. The research was carried out by the Harvard Business Review and sponsored by Verizon Enterprise Solutions.

Cloud technology offers a competitive advantageCompetitive advantage has come in a few different forms, including but not limited to:

  1. Improved business agility
  2. Increased responsiveness to market changes
  3. The ability to access data anywhere

Cloud Technology is best known for being less costly than enterprise solutions, but it benefits businesses in many other ways. Cloud technology provides a flexible platform that can be scaled based on specific business needs at a particular time.

When new technology is developed, it is also simpler to integrate with a cloud solution rather than an enterprise solution. This decreases time to market and allows businesses to be responsive to market changes, providing a clear competitive advantage.

Data privacy and data residency issues are preventing insurers from adopting cloud technology. Although according to a recent survey, over half of respondents believe data security concerns will be unlikely to prevent cloud adoption in the next five years, but only one in five chose the technology as a top priority for 2014.

Data residency is a huge issue outside the United States, particularly when a Cloud Services Provider (CSP) has no local data center. The US patriot Act allows the US Justice department to monitor American citizens and others within their jurisdiction. In response to this act, a number of countries including Canada, have forbidden companies to store their information within the US. CSP’s, such as Salesforce, are beginning to build data centers outside the US to address these issues. In fact Salesforce will open its first European data center by the end of this year.

To learn more about security in the cloud best practices read this blog post written by Barry Cotter, one of ClaimVantage’s Senior Developers.