Tech Time: Thoughts on outsourcing your core software
Ask these four questions of your vendor and credit union team before deciding who hosts your core
In a previous life working for one of the largest core vendors, I had the opportunity to evaluate the decisions of over 100 credit union clients that migrated their core software from being hosted in-house to being hosted in an outsourced environment maintained by the vendor.
Let me explain what this migration entails. To understand the difference between running your core software I/H versus running it O/S, think of I/H as software running on a server somewhere within your credit union’s walls. If you opt to take all of that software and move that to run within the vendor’s data center, that would be O/S.
There are other common terms for an outsourced environment. It is referred to as hosted, ASP (application service provider), SaaS (software as a service) as sometimes even “in-the-cloud”, although that term is a more generic representation.
These experiences might be helpful to credit union CEOs who have not yet decided if they want to migrate. Let’s discuss them in the frame of questions that CEOs should be asking their vendor and internal teams.
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