By Peter Waring (pictured), CTO, JAVLN

When it comes to choosing technology for your brokerage, the decision between server-based and cloud-based software will shape how your business operates, grows, and competes for years to come.

Think of it like choosing between keeping all your client files in a filing cabinet in your office versus storing them in a high-security vault with 24/7 access from anywhere. Both options store your documents, but only one positions your business for the future.

The real difference: More than just location

Server-based software: The traditional approach

Server-based software runs on physical hardware in your office.. You own the servers, manage the maintenance, and handle all the security yourself. It’s like having your own power generator, while you have complete control, you’re also responsible for everything that can go wrong.

Cloud-based software: The modern solution

Cloud-based software runs on shared infrastructure managed by technology experts. Accessed through the internet, just like you would Netflix or your online banking. The difference is that instead of entertainment or banking services, you’re accessing your broker management platform.

Not all “cloud” solutions are created equal.

True cloud vs “cloud-hosted”: Understanding the difference

Many software providers claim to offer “cloud” solutions, but there’s a crucial distinction to understand:

Cloud-hosted: This is like taking an old petrol car and retrofitting it with an electric motor. The software was originally designed for servers and has simply been moved to a data centre. You still need clunky VPN connections. A VPN is a secure ‘tunnel’ that lets you connect your device to the server safely over the internet, so it doesn’t leverage modern cloud benefits.

True cloud-native: Think of this like a Tesla – designed from the ground up for its environment. True cloud software is built specifically for the cloud, offering seamless access, automatic scaling, and modern security without the need for VPNs.

The security reality: Why cloud is actually safer

One of the biggest concerns we hear from brokers is: “Is my data really safer in the cloud?”

The answer is yes, and here’s why:

Enterprise-grade security investment

Cloud providers like Microsoft Azure invest billions annually in cybersecurity. They employ world-class security experts and implement sophisticated threat detection systems that would be impossible for individual brokerages to match.

JAVLN Officetech Cloud, for example, leverages Microsoft Azure’s enterprise-grade security infrastructure with data centres right here in Australia. Your data stays within Australian borders while benefiting from globally recognised security measures.

24/7 monitoring and protection

While your office server might only receive attention during business hours, cloud platforms operate with round-the-clock monitoring and instant response systems. It’s like having a security team that never sleeps.

Automatic security updates

Perhaps most importantly, cloud-based software receives continuous security updates. Vulnerabilities are often patched before they can be exploited. With server-based systems, security updates depend on your IT team’s schedule, creating dangerous gaps.

Advanced security features

Modern cloud solutions come standard with features that would require significant investment for server-based systems:

• Multi-factor authentication (mandatory, not optional)
• Encryption of data both at rest and in transit
• Advanced access controls and user permissions
• Comprehensive audit trails
• Immutable file notes and document protection 

The true cost: Looking beyond the price tag

Server-based software might seem cheaper upfront, but the total cost tells a different story. It’s like an iceberg, most of the expenses are hidden beneath the surface.

Hidden costs of server-based solutions

• Hardware maintenance and unexpected repairs
• Cooling and power systems for server rooms
• Dedicated IT staff or managed services contracts
• Security system implementation and monitoring
• Backup and disaster recovery solutions
• Manual update and patch management
• Compliance auditing and certification costs

Predictable cloud economics

Cloud solutions operate on a transparent subscription model with predictable monthly or annual fees that include:

• All hardware infrastructure and maintenance
• Automatic security updates and patches
• 24/7 technical support
• Built-in backup and disaster recovery
• Compliance management and certifications
• Scalability without additional hardware investment

Business impact: What this means for your daily operations

Accessibility and user experience

Server-based: Limited to office access or clunky VPN connections that can be slow and unreliable, especially for remote workers or when travelling.

True cloud: Seamless access from any device with an internet connection. Your team can work from anywhere with the same fast, reliable experience.

Scalability and growth

Server-based: Adding new users or expanding capacity requires purchasing additional hardware and manual configuration. Growth is expensive and slow.

True cloud: Automatic scaling based on your needs. Add new team members instantly without worrying about server capacity.

Business continuity

Server-based: If your server fails or your office experiences issues, your business stops. Disaster recovery requires significant additional investment.

True cloud: Built-in redundancy across multiple data centres means your business keeps running even if one location experiences problems.

Compliance and industry standards

For Australian and New Zealand insurance brokers, compliance isn’t optional. Cloud providers maintain strict adherence to global standards including:

• SOC 2 Type 2 compliance
• Australian Cyber Security Centre (ACSC) Essential Eight framework alignment
• Local data sovereignty requirements

These provide assurance that your technology meets the highest security standards expected in the insurance industry.

Making the right choice for your brokerage

The decision between server-based and cloud-based software isn’t just about technology – it’s about positioning your business for the future.

Consider these questions:

• Do you want your team focused on serving clients or managing IT infrastructure?
• How important is it for your staff to access the system remotely?
• Can you afford unexpected downtime when servers fail?
• Do you have the expertise and budget for comprehensive cybersecurity?
• How quickly do you need to scale your operations?

The bottom line

While server-based software might offer the illusion of control and lower upfront costs, cloud-based platforms provide superior security, predictable costs, and the flexibility to grow with your business.

Think of it this way: You wouldn’t store your clients’ important documents in an unsecured filing cabinet without climate control or backup copies. Similarly, entrusting your digital operations to dedicated cloud security experts, rather than managing everything in-house, is simply the more prudent choice.

Moving to a true cloud platform like JAVLN Officetech Cloud is an investment in your security, efficiency, and future growth. Built with SOC 2 Type 2 compliance, it provides the enterprise-grade security and local data sovereignty that Australian and New Zealand insurance brokerages require.

The question isn’t whether you can afford to move to the cloud – it’s whether you can afford not to.