Wealth managers have started appreciating the benefits of the cloud technology: lower costs, easier setup, and the flexibility necessary in the times of remote work. In this article, I explain the reasons to choose cloud-based solutions instead of old-fashioned on-premises alternatives.
Security is the biggest concern when migrating from on-premises solutions to the cloud. However, recent data leaks have proved that on-prem is not more secure. In March 2021, hackers exploited a security vulnerability in on-premises Microsoft Exchange email servers, which allowed them to access the email accounts of at least 30,000 organizations in the US only. At the same time, cloud-based Exchange servers were not affected.
Cloud-based data centres employ security measures beyond the affordability of most businesses; therefore your data is often safer in the cloud than on a server in your office.
Cloud providers frequently update their services with security patches. On-premises systems require EAMs to proactively track all security updates and apply them manually. It makes a huge difference in case of a severe security vulnerability.
WealthArc runs its SaaS platform for wealth managament on Microsoft Azure which meets the highest security standards required in the financial industry
Cloud solutions do not require any up-front investment in infrastructure. You only pay for the resources you use according to the pay-as-you-go pricing model. On-premises hosting systems enforce you to estimate your infrastructure usage for multiple years ahead and purchase the servers that will ensure sufficient long-term capacity, which is much more expensive. We have summarized the pricing models of cloud-based and on-premises systems in this blog post.
Both on-premises and cloud computing can face service outages. However, the remedy for the two differs significantly. With on-premises, one needs to ensure infrastructure redundancy to build business continuity procedures. Your system provider needs to setup backup systems and fail-over procedures to restore services as soon as possible.
With a good cloud computing service, the infrastructure redundancies and fail-over capabilities are already in place.
Do you need to scale up quickly and increase the capacity of your infrastructure? With the cloud, you have access to almost unlimited computing and storage capacity. Whenever you need it.
COVID has shown how impractical on-premises installations are: access to your systems and data is possible only from the office or your home through dedicated VPN connection. However, using VPN connection from home devices is cumbersome. Cloud users can benefit from secure and easy access through web browser from any device.
Setting up the infrastructure in the cloud is almost instantaneous whereas setting up on-premises infrastructure is a much longer process.
To maintain an on-premises system you need an in-house or external IT specialist to maintain your infrastructure. The providers of cloud-based systems take this burden off your shoulders. If anything happens with the application, they solve the problem internally without engaging you.
Early adopters will be the future leaders
WealthArc is the first wealth management platform hosted natively in the Microsoft Azure cloud. It removes all the pitfalls of old-fashioned on-premises tools allowing EAMs to keep business continuity during lockdowns and other unexpected circumstances. Our clients enjoy all these benefits and, as a bonus, become innovation-oriented in the eyes of investors.
We believe that the cloud is the future of wealth management. As our CEO Chris Gogol mentioned in one of his interviews, “early adopters will be the future leaders”. If you invest in technology today, you will gain a competitive advantage in the years to follow.
If you would like to learn more about our could-based solution, contact us. Our advisor will show you how you can implement WealthArc in your company and how your team members will benefit from it.