The fourth Celent Peer Networking Event was held last Friday at the headquarters of Allied Insurance, a division of Nationwide, in Des Moines, Iowa. Thirty people from 11 different insurers contributed their experience with evolving cloud computing and legacy modernization strategies. As with other events, the discussion was open, active and focused on practical steps that can be taken to transition insurance automation to new platforms.
A review of recent Celent research kicked off the meeting, survey data on core systems modernization and the business case for updating legacy systems was presented. Data from a 2011 Celent report, Still Seeing the Shadow: Groundhog Day for Legacy Modernization (
A panel discussion concerning the use of a rationalized application portfolio followed. Dan Drabenstot, Principal Enterprise Architect, Mutual of Omaha, Ray Wasilewski, Vice President Technology, FBL Financial Group, and Ben Moreland, Senior Analyst, Celent, shared their experiences in using a portfolio approach to plan legacy modernization. They offered several examples of how a system inventory improved communication between business and IT areas. One participant detailed a scoring methodology that prioritized automation projects and highlighted tradeoffs in decisions concerning alternative implementation paths.
In the afternoon, Vijay Gopal, Enterprise Chief Architect, Nationwide Insurance and
Ram Rao, Commercial and Specialty CTO, Allied Insurance facilitated a discussion concerning the implementation of a cloud computing platform. Alternatives were identified concerning initial projects involving cloud technology. The consensus of the group was that, eventually, most companies will employ a mixed approach that will include both public and private clouds. Participants mentioned that they currently are choosing specific systems to experiment with in order to learn the skills and processes needed to successfully manage the new environment. A key point was made that any vendor of cloud services to insurance companies must be able to meet the regulatory constraints of the industry.
Celent would like to thank all the attendees and the presenters for their participation in making this a successful event. We look forward to hosting the next Peer Networking Event: Enterprise 2.0: The Social, Mobile, Connected World at Allianz Life headquarters in Minneapolis, MN on Friday, October 7th, 2011 (for information, please visit
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Mike Fitzgerald is a senior analyst in Celent's insurance practice, and can be reached at mfitzgerald@celent.com.
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