Plum Software - the provider of IFA and mortgage broker software - is urging advisers to think long and hard before switching to cloud computing as a model for running the back office.

The warning comes as more and more UK businesses consider cloud computing, which appears to offer a low-cost option for advisers looking to reduce the physical IT infrastructure (and, potential, support staff) by adopting a virtual environment. But Ann Dempster, managing director of Plum Software, has urged advisers to consider a range of issues before getting lost in the Cloud.

· Security – in a cloud environment, everything is delivered as a service, and the end user has no visibility of where the servers reside, the security in place, audit benchmarks, or even the disaster recovery capability. Dempster says “when dealing with critical back office applications, it’s essential you know the security measures that are in place and how they work”;

· Location – virtual environments have the luxury of being everywhere and nowhere all with a touch of a button. However, for company directors, knowing where your data is actually being physically kept is important. When you outsource an IT function to a cloud, the data centre could be anywhere, and there are few guarantees of quality. Dempster explains “you could be inadvertently sending key client data to a pretty basic computer room. It’s your data – and you should know where the data centre is located and if there could be any external policy or regulatory implications for that particular region or country.”

· Functionality – if you decide to hand over your information to a cloud-based solution, the next consideration is how to ensure that there is a clear separation between your data and that of other customers – particularly if you all use a shared database. Ann Dempster warns “it’s also important to know how much capacity is available, if it’s easily accessible and can you get a backup of your data at any time? If not, you might want to rethink!

· Contract/Agreement – when choosing the right provider for your business it’s important to decide on one that offers a contract. Many infrastructure-based clouds do not have a contract between the vendor and the client stipulating security and continuity. There is sometimes no SLA (Service Level Agreement) - just a monthly fee which means if you have a serious issue, all you can do, is set up somewhere else after the event and expect that you have lost your information.

Ann Dempster, Managing Director at Plum Software said:

"We urge advisers to research cloud providers prior accurately to have the confidence that your business data is secure and that you know where your information is at all times. If not, you could end up wasting a lot of time and money and – in the worst case scenario – compromise your client data.”

“A good compromise is to look at a Private Cloud – which holds your own database and regularly send you back-ups. These offer the benefit of off-site accessibility and storage with high security and the confidence of being in control of your data.”

…ends…

Notes to editors

About Plum Software
Founded in 1993, Plum Software Ltd is the number one independent, specialist software house for financial services.
Plum Software provides complete solutions for front and back office for the IFA and mortgage broker. The software stores all the client details including scanned documents, correspondence, faxes, emails, voice recordings and diary notes to replace the use of the filing cabinet. When the software is used through the Internet, advisers can access all the information from any location without having to invest in expensive systems. By integrating to a large number of providers, information need only be entered once.
Its mission is to remain a reliable technology partner to all its clients, to remain at the forefront of software solutions and provide its clients with high quality, trustworthy and user-friendly software and support. To achieve this it holds regular user meetings all over Britain and liaises closely with clients individually and with leading industry consultants.

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