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3 Ways Cloud-Based Tolling Benefits Agencies’ Bottom Lines – And One Note of Caution

By Wendy Griffin

November 19, 2019

It’s common knowledge in our industry that cloud-based tolling is the wave of the future. What’s not so commonly discussed are the significant financial benefits the switch can provide for tolling agencies.

 

Benefit #1: It’s easier without hardware.

Traditional tolling systems mean agencies have to purchase tolling hardware, regularly maintain it, retain a higher volume of IT staff, and then purchase new hardware every couple of years. That’s a lot of money to invest.

With cloud-based tolling options, agencies no longer have to pay for hardware or the added IT staff needed to maintain it, and the service provider takes care of updates as part of an agency’s contract.

Cost-wise, there are a growing number of cloud companies in the marketplace, meaning that prices are likely to stay fairly stable as more agencies adopt cloud storage solutions.

 

Benefit #2: Flexibility can be good financially.

Traditional data storage is pretty hard and fast. If your data needs are projected to increase, you have to buy the hardware for it – and then you have that hardware even if your estimate was off-base.

In contrast, cloud-based solutions allow you to change your storage allotment, meaning you won’t have to pay for storage you don’t need. With many companies, you can alter your data allotment within minutes, allowing you to adjust storage at a granular level.

 

Benefit #3: Consistency is consistently good for your bottom line.  

Traditional data storage comes with heavy costs every few years.

If you have to buy hardware every four years, that means three of those years, your costs are lessened – but you have to prepare for that fourth year when you may be hit with a large payment. That’s not even accounting for the maintenance and repair fees that pop up every once in a while.

Cloud-based storage payments happen on a regular, scheduled basis, without surprise hardware costs to create an inconsistent flow of expenses.

 

Note of caution: Data security changes hands – blessing or curse?

With cloud-based tolling, your agency is no longer unilaterally tasked with ensuring the day-to-day security of your data. That has the potential to be a blessing or a curse, depending on how you handle it.

It can be scary to hand off some of your data responsibility to somebody else, especially given how rapidly the industry is developing. Good news: cloud storage companies are creating new standards and maintaining compliance. 

Your agency just needs to make sure that the data storage company you choose meets your specific security needs and standards.

Your role now is to do the due diligence to ensure your cloud storage company is doing its due diligence.

 

Get Started

There are a lot of elements that agencies need to consider before making the switch. Want to learn more about what you should keep in mind as you consider the switch to cloud-based tolling?

Topics: Insights, Emerging Technologies, Tolls & Managed Lanes, Data Series

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About the Author

Prior to joining RS&H, Senior Tolls Technology Specialist Wendy Griffin served as the toll revenue manager for the North Carolina Department of Transportation (NCDOT). Now, Wendy advises RS&H clients on tolling aspects of alternative contract delivery, toll finance, toll operations, best practices associated with system delivery and business policies. Based in Raleigh, Wendy is a recipient of the Order of the Long Leaf Pine for her success in driving business practices forward within the state. She can be reached at Wendy.Griffin@rsandh.com.

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