As part of their digital transition, more and more insurers are turning to cloud computing to exploit the benefits of modern IT landscapes. In doing so, CIOs and IT managers need to consider a number of aspects when deciding to integrate cloud services into their existing infrastructure. Cost, security, performance, availability and reliability are just a few of the criteria. There is one more factor to consider: elasticity.
An elastic infrastructure makes it possible to expand or reduce processor, memory and storage resources as required. This allows the insurer to react dynamically to peak loads without having to plan for fixed IT operating costs in the long term. Requirements include metrics and a high degree of automation in addition to an elastic architecture.
The added value of an elastic infrastructure becomes apparent for insurance companies when, for example, peak loads have to be cushioned during year-end tariff setting for a motor vehicle insurance company, or when the load on portals has to be relieved after the provision of new/additional functionalities. It also helps to reduce costs as regards excess capacity, as there is no need to keep this additional equipment on hand.
Scaling enables elasticity
‘Elasticity’ and ‘scalability’ are terms that are often used interchangeably, but an elastic infrastructure is not possible without scaling of resources. However, a system can certainly be scalable without meeting the requirements for elasticity. For example, with preparation, large monolithic systems can be scaled across several machines, but reacting to peak loads, for instance, is only possible within the limits of the hardware.
