What's in a name?

The term “cloud computing” was originally coined to help business people visualize the technical concept behind having a third party provide servers and software applications remotely to a business. It reflected the “cloud” iconic symbol used in presentations and charts that depicted the undefined place where processes happened. It addressed how the request/response relationship between businesses and cloud companies worked and all of the security issues involved.

Several agency management systems used by independent agents offer versions that are based in the cloud, meaning that the software is on the vendors' servers and responsibility for maintaining and updating the technology and features is theirs and not yours.

For me, cloud computing was an intellectual subject; understanding what it represented for IT departments and companies was one thing, but really knowing what it meant day-to-day was something else. That is until recently, when I realized in my own small world, I was experiencing one aspect of working in the cloud.

I started writing this column on my desktop computer and am now away from my office and finishing it on my laptop. I didn't have to save my file to a disk or a thumb drive; I didn't have to “push it” to some storage. When I bought my computer, I signed up for a service that provided me with remote storage in the cloud that allows me to access my documents from anywhere. What's particularly convenient is the setup for any work I do for my business, which automatically synchronizes with my cloud. All of my other devices, including my laptop and smart phone, are loaded with an app that syncs all the files back to the individual device. If I ever need more storage capacity, I can pay for a larger cloud.

No matter where or when I make changes, I know that as long as I have access to the Internet I have access to the latest version. This is, in its simplest form, cloud computing. Some might dispute that since my applications are not also in the cloud but reside on my computers, I'm not truly experiencing cloud computing. I disagree, but I do agree that I'm not taking full advantage of what's out there.

Drive the future

For consumers, companies like Apple, Google and Cricket (which just rolled out a wireless plan that includes music downloads) provide cloud storage with user interfaces to show us the way of the future. And as far as consumers are concerned, the term “cloud computing” is an unknown and nothing they need to be concerned with.

This trend of making access to service and functionality easier on the consumer front is finding its way into the business world. As I write this, app downloads from the Apple Store just exceeded 10 billion; Apple has developed a similar app store for the Mac. Both the Android and BlackBerry platforms have recognized this important movement in how people access applications and have entered the app competition themselves.

I can see a time when IBM, Microsoft and other corporate-level technology providers open up enterprise app stores where IT departments can download apps to support their systems on internal and customer fronts. As I'm sure you know, rolling out new software within a company is often difficult, time consuming and sometimes fraught with trouble.

This idea is based upon the belief that personal consumer attitudes drive expectations in the business environment.

The app approach to software sales is so successful partly due the move from front-end interface to cloud-based content service when downloading an app. That also is why my more than 150 iPhone apps update constantly. Bug fixes, new functionality, major upgrades happen automatically; there's nothing I need to do but permit it—a major selling point of cloud computing.

How do agents decide?

While you most likely already have adopted some forms of cloud computing in your personal use of technology, as an agent you need to go through a more formal analysis of the pros and cons of cloud computing for your business. Consider these questions before electing to move forward into this environment.

1. Where is my data? Generally speaking, the vendor providing you the “cloud” also stores your agency's data. But as with every good disaster recovery plan, you should be frequently backing up your data and storing it offsite, regardless of your technology system. Keeping a copy of your backup locally to your own storage device is always an option, too. What happens if the vendor goes out of business? How do you get your data back and in what format is it returned?
2. Who else might have access to my data? Every vendor must employ staff to manage its systems. Just as we are concerned about security of our personal medical information, we should be concerned about the security of our business data. Question the cloud vendor about its internal hiring practices and management of those who have access to your info.
3. What is the vendor's disaster recovery plan? How safe is your data? If a disaster strikes, how long will it take for the vendor to restore access to your data? What does its service level agreement state as its uptime percentage? Ideally, you want it to be up and running 99.9 percent of the time.

These are just a few of the questions you should ask. As with any significant agreement, be sure to shop around before committing your agency to any cloud-computing vendor.

Additional thoughts

When considering different cloud computing providers, look at all of the applications you would have access to, even if you don't need them all now. Be sure your provider offers growth in the direction in which you're heading. If the vendor doesn't offer certain applications or services, find out if these are included in the vendor's long-term plans or if you can have them added when you need them and what the costs might be. Once you commit to a vendor, you don't want to have to jump through hoops for the vendor to meet your future needs.

As with any major decision, planning is the key, not just to making the right choice for your agency, but being able to implement that decision effectively and successfully. How fine you are on cloud nine will be determined by how well you execute right here on Earth.