Imagine investing in a technology solution that not only gives you a significant advantage in your market, but allows you to add and remove functionality and capacity as and when you see fit. That is a major advantage when you implement horizontally scalable technology, which allows you to expand on the base product’s capabilities. When you invest a technology solution that allows for such flexibility, you’re investing the ability to customize that product to adapt to your ever changing business needs.
For example, if your current business writes in three states, but a recent acquisition expands your market to additional two states, a horizontally scalable solution would allow you to simply add those additional states to your existing core solution in a matter of weeks. Or, if your claims handling is moved from a legacy internal solution to a third party administrator, your horizontally scalable technology solution can be easily integrated to address those changes.
But why horizontal? Horizontally scalable architecture in your solution is typically more flexible than a vertical architecture, allowing for the addition of capacity or functionality on the fly. Further, such architecture provides the ability to integrate multiple solutions attaching to a single foundation, thus facilitating expansion that feeds from a single source of information. Conversely, vertical architecture most often requires costly and time intensive changes to the core.
So what does that mean for your business? It means the technology solution you choose for your business should work well today and just as well two years from now, even if your business then looks much different than it does today. It also means that costs can be kept within reason. Because you can expand whenever you’re ready and able, you pay only for those components or modules you need now. Therefore, your budgets remain intact and you realize immediate business benefits from the pieces you purchase today.
Is your current system vertical? What limitations have you noticed? Do changes cost too much and take too long? Does your IT group tell you it just can’t be done? How would a horizontal structure benefit your business?