Over the past decade, cloud computing has transformed the way companies operate and do business. Rather than managing onsite servers and local storage devices, companies can leverage the internet to access remotely managed databases and applications on-demand, from anywhere.

It's also big business. Initially accelerated by the pandemic, the growth and adoption of cloud-based technology is widespread and continues to grow at a rapid pace, with over 96% of companies using the public cloud and 84% using the private cloud. Industry experts expect cloud computing to reach $300 billion in revenue in 2024 and to double in size over the next four years.

Cloud computing is here to stay with its flexibility, scalability, efficiency, and security. But what specific kinds of solutions do different types of cloud computing services provide? Further, what does technology insurance for cloud services companies look like and why do they need it?

The ABCs of Cloud Services

To help technology businesses find the specialized insurance they need, agents and brokers can benefit from first understanding the industry and its jargon. The various types of cloud services have grown over the years. You may already be familiar with some of them if you've worked with tech firms in the past. But to the uninitiated, it can look like alphabet soup. So, what do all these "fill in the blank as-a-service" companies actually do?

The Top Cloud Services are:

• SaaS: Software as a service. With SaaS, customers can access software online and on any device instead of purchasing it on a disk or downloading and installing it on one device. Examples of common SaaS products and companies include Salesforce, Zoom, Google Workspace, and Office 365.

• IaaS: Infrastructure as a service. Using IaaS, businesses can put all their IT infrastructure in the cloud. You no longer have a physical server or a large IT staff to manage it. Examples include Amazon Web Services (AWS) and Microsoft Azure.

• PaaS: Platform as a service. With PaaS, businesses have access to the tools, infrastructure, and support to build and run apps in the cloud. Examples include AWS Elastic Beanstalk, Windows Azure, and Google App Engine.

Some other less-common cloud service models include:

• FaaS: Function as a service. FaaS lets you install certain functions rather than entire applications to your servers. FaaS is similar to PaaS, but you only need to deploy a function or part of an application, not all of it. An example of this is Amazon Lambda.

• CaaS: Container as a service. Sometimes seen as a hybrid or subset of IaaS, CaaS lets you manage and deploy containerized applications and clusters instead of using physical hardware or virtual machines. Most public cloud services have CaaS, and two examples are Google Kubernetes and Docker Swarm.

• LaaS: Licensing as a service. LaaS keeps track of an organization's licenses and billing in the cloud instead of using traditional paper and keys. Examples include RLM Cloud and 10 Duke.

• DaaS: Data as a service. With DaaS, businesses use the cloud for data storage, integration, processing, and analytic services. Examples include Microsoft Azure Open Datasets and IBM Watson.

DaaS can also stand for Desktop as a service. Desktop as a service delivers virtual desktops to end-users where the desktop environment is separated from the physical device used to access it. Users can access their virtual desktops remotely over a network or device. Examples include Amazon WorkSpaces and Citrix Managed Desktops.

Whether your client focuses on SaaS or CaaS, cloud companies are just as exposed to business risks as traditional on-the-ground organizations. No matter the acronym, technology insurance for cloud services companies is a must.

The Essentials of Technology Insurance for Cloud Services Companies

Philadelphia Insurance Companies (PHLY) is one of the few leading insurance carriers offering clients like yours this three-part coverage solution to ensure a comprehensive risk protection framework:

1. The Tech E&O with Professional Liability, Cyber, and Media Liability coverage options to address a variety of exposures, such as negligence, errors and omissions, technology services, technology products, cyber liability and breach response costs, media liability, and copyright or trademark infringement.

2. The Commercial Package with General Liability, Property, Auto, and Inland Marine coverage protection.

3. The Umbrella to increase the limits of liability coverages and help pay excess claims.

PHLY can also offer complementary products, including Directors and Officers Liability (D&O), Employment Practices Liability (EPLI), Fiduciary Liability, and Crime.

PHLY can handle your tech clients' unique and complex coverage needs with ease. But there are three other ways PHLY offers even more:

1. Talk to one underwriter throughout the application process. We believe it makes sense to have the actual underwriters answer your questions and bring their regional knowledge and industry experience to your situation. They aren't quoting using an algorithm, nor will calls and emails bounce from one person or department to the next. You get answers and action when you need them.

2. Risk management solutions. At PHLY, we offer many no-cost or low-cost Risk Management Services to help insureds identify, prepare for, and mitigate risk:

   • Best Practice Help Line: Provides best practice consultations and education via phone on how to effectively manage employer-employee relations issues

   • Cyber Liability Risk Management: Access to our eRiskHub cyber risk management portal with resources to help prepare, respond, and recover from data breaches and other cyber incidents

   • PHLYTRAC: Vehicle telematics program for driver safety insights

3. Tech industry underwriting experience. PHLY can provide expedient, personal service and customized policies because of our industry experience. The majority of our underwriters handling these policies each have over ten years of experience covering tech companies. Our solid depth of knowledge gives us the freedom and flexibility to change as quickly as the industry. It's why we can often cover newer businesses such as SaaS and PaaS cloud services.

You can relax knowing that PHLY offers everything your cloud service provider clients need and want, along with the financial stability to be there when needed.

To learn more about how technology insurance for cloud services companies can help your clients, visit our product page or contact your PHLY rep today.