Keep the Mustang, drop the Mainframe!

Does it really make sense to maintain your own data center and the costs associated? What are your client’s actually gaining?

It Depends who your clients are and the services you provide. In this discussion we’re going to take a look at the question from the point of view that you are a TPA that provides record keeping services for retirement plans and plan sponsors are your clients.

To answer the question let’s first look at what clients want:

• Features


• Low Costs


• Participant Account Access


• Security

Participant account features are not enhanced. In other words, by simply changing the location of the server, features like mobile online enrollment will not magically appear. Data center costs are expensive. Annual operating costs for a data center even in very small operation can exceed a $1,000,000 per year.



Today Sponsors expect Participants to be able to access their account around the clock. In order to guarantee business continuity, redundant systems must be installed and should reside in multiple sites. Ask yourself this question…If your business operations are in a modern glass building with the primary data center in the interior of that building behind glass walls for visitors to view, and a Tornado or Hurricane wipes out your data center, will your current clients stay even though you are able to bring your systems up in 24-48 hours or will they go to your competition that is prepared for disasters?



Proper security includes physical building security, computer room entry and internet security. Failure to properly accommodate and maintain any of these components can lead to the systems becoming compromised or taken off line.

Solution: Invest in features that clients value & Move to Cloud

• Total Cost of Ownership is reduced


• Dedicated personnel cost with limited experience are replaced with shared personnel that are experts.


• Hardware that is expensive and quickly made obsolete is replaced with modern, cost efficient hardware that is scalable.


• Account availability and security is increased through the use of hardened data centers that include business continuity, natural disaster survival, physical security and Internet intrusions within their core design.