3. Hosting Considerations
When considering cloud adoption, there truly is a silver lining.
That's because the global cloud computing market is expected to reach
$623.3 billion by 2023.
In the B2B world, enterprise software is delivered increasingly via the vendor-hosted, cloud-
based model. But when it comes to claims management systems, it is important to keep other
options like self- or client-hosting as an alternative business model. Both schools of thought
have their pros and cons.
Maintenance &
Support
Data Protection
& Security
Functionality &
Performance
Customization
& Scalability
For many companies, the vendor-hosted
model is the right one. Utilizing a monthly or
annual subscription fee, the vendor is
responsible for the maintenance and support
of the system, data protection and security,
and functionality and performance. A
vendor-hosted model also offers the benefits
of customization and unlimited scalability.
Keep in mind that this model places a heavy
reliance on the vendor for the short- and
long-term operation and success of your
claims system.
While security protocols have increased exponentially,
privacy and security are the top two concerns for
software-as-a-service implementations. Claims
organizations deal with a lot of sensitive information
that is regulated by strict industry regulations and
privacy constraints. Some companies prefer to
manage – and protect -- this information behind their
own firewall.
Another advantage is that there are no on-going
payments to third-party organizations in a self-hosted
environment. The caveat to that setup is the client will
need to service and maintain their own equipment
and software. It also requires a dedicated team of
skilled technicians to monitor and fix any system
issues.
CLAIMS BUYERS GUIDE | 5
