Advantages of Hosted Software and Data Security

Thursday, April 14, 2011

Lindsay Walker


We are often asked a lot of questions about how secure these solutions really are - a lot of people are surprised with our response. 

Companies need to keep information security on their radar at all times, as the number of risks from both within and outside of the organization are increasing rapidly. 

Another reason to worry is that companies collect, and therefore store, more information about clients/customers than ever before. You need to be responsible with their information.  

Hosted Solutions

The article "Why Move To Hosted Authentication?" explains a wide variety of benefits offered by hosted solutions:

"A hosted solution means there is no up front investment, no servers to buy, no extensive training, no network implementation or complicated integration and no heavy ongoing cost in managing the solution and associated infrastructure. In times of financial uncertainty, paying a fixed sum on a regular basis to a third party can be seen as an advantage."

Hosted solutions hold the vendor accountable for system performance and security, as information is stored on the vendor's servers, not the company's.


Depending on the needs of the users, building a case management solution in house can become time consuming and lead to a sub par solution.

Laws, regulations and company policies don't stay the same forever - they change. Investigators need to make sure case management software can be easily modified to reflect these changes.


Having information stored offsite is often safer than hosting it in your office. In a presentation from Allstate's Ethics Director, Lyn Scrine, she mentioned that each workplace has "super-users," people who can hack into systems and extract sensitive information.

Having information stored offsite makes it challenging for anyone inside your organization to get their eyes on information they aren't permitted to see.


Hosted solutions help free up the time of your internal support team. Any support issues pertaining to your hosted solution are taken care of by the service provider - not your internal IT support team.

This means that you get your problems solved faster and your IT department isn't interrupted by a lot of small issues.

Time and Money

  • Fewer security breaches
  • No need to hire extra staff
  • Faster implementation time
  • Little to no involvement from your IT department

The costs of security breaches continue to climb and companies cannot afford to keep losing money because if these issues. There are countless ways hosted solutions help you save time and money.

Your largest responsibility will be choosing a reliable vendor that stays up to date with security issues.  Other vendors can probably build you a system to meet your needs, but the difference comes down to support and maintenance after all is said and done.

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