Celent Says

Vendor Troubles Must Be Taken in Context

Craig Weber
Insurance Experts' Forum, April 28, 2011

Proponents of cloud computing aren’t going to like the fact that Amazon had issues that resulted in outages among its EC2 customers’ sites. The know-it-alls out there are probably already saying, “If Amazon has issues like this, imagine what would happen if you placed your bet on a less-experienced cloud vendor!” The gravitational shift toward the cloud for both core and non-core systems has surely slowed down. 

But the fact is that most insurers have their own outages when they host applications internally, in some cases with more frequency and severity than we’re seeing here with Amazon. It’s interesting to note how some of the customers who are known to be affected have reacted: “We wouldn’t be where we are without EC2,” said one.

So despite the horror of having their public-facing site go flighty for a day (or two–we’re hearing the problems were not immediately completely resolved), there’s apparently a reserve of goodwill that has built up over many months of near-flawless operation.

Instead of putting the industry on red alert, Celent believes this event should focus the discussion on the relative reliability of various approaches, and the tradeoffs between them. Should you know your vendor’s architecture, and reality-check their DR and failover strategies? Absolutely.

You should also run the business case for change, especially if quickly gaining scale, nimbly moving into new markets, or handling seasonal spikes in activity are issues for which you have few answers. Vendor-caused outages are never a good thing, but they are probably not your biggest, baddest problems either.

This blog has been reprinted with permission from Celent.

Craig Weber is SVP of Celent's insurance group, and can be reached at cweber@celent.com.

Readers are encouraged to respond to Craig using the “Add Your Comments” box below.

The opinions posted in this blog do not necessarily reflect those of Insurance Networking News or SourceMedia. 

Comments (1)

Amen!
When a plane crashes everyone panics, but air travel is still the safest mode of transportation.

Posted by: Justin L | April 29, 2011 10:25 AM

Report this Comment

Add Your Comments...

Already Registered?

If you have already registered to Insurance Networking News, please use the form below to login. When completed you will immeditely be directed to post a comment.

Forgot your password?

Not Registered?

You must be registered to post a comment. Click here to register.

Blog Archive

Driving Growth Through Distribution Management

In the current hyper-competitive marketplace, many carriers are focusing on improving their distribution practices as a key technique for driving growth.

The Start of a New Era: Digital Retailers and Insurance

Insurers from all around the world are making great efforts to become digital.

Google and Insurance: One Year Later

Google is getting the approval for selling insurance on their compare site in a large number of states via a number of different insurance partners.

How IT Managers Can Get Close to Policyholders

Four steps CIOs need to take to lead insurance organizations to greater “customer obsession.”

Strategic Initiatives for 2015: Making Sense of the Shifts

Insurers must choose between embracing innovation or just continuing with business as usual and run the risk of becoming a casualty in the new competitive battle.

To Stay in the Game, Insurers Must Aggressively Embrace New Consumer Technologies

Emerging technologies displayed at the CES could be some of the greatest change agents since the introduction of the Internet, offering breakthroughs that could challenge many businesses.