Cross-ocean clouds are gaining IT favour

Concerns about latency and questions about legal and regulatory issues aren't stopping CIOs from moving key systems to the cloud, even if it means using applications that are hosted in data centers located overseas.

Just over a year ago, Tohru Futami came to the conclusion that AIG Edison Life Insurance Co. needed to upgrade its core applications.

The Tokyo-based insurer's systems were seven years old and often didn't let the back office and the sales staff share information in a timely manner. Furthermore, some of the company's processes were still paper-based.

The primary options were to rewrite the applications or move to the cloud and run hosted software, said Futami, former CIO and managing director at AIG Edison, which was acquired by Prudential Financial Inc. last month.

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