According to Virginie O'Shea, an analyst for the Aite Group, financial firms are taking advantage of cloud services in order to protect their bottom line. Due to the series of cutbacks the industry has suffered in the wake of the 2008 financial crisis, many banks are using technology treplace workers in the wake of layoffs, according to Investors.com. By 2017, spending on automation by financial institutions could go up to $3.2 billion, which would be a 28% rise from the $2.5 billion dollars used this year.
The report goes on to explain that administrators had previously been slow to adopt cloud computing due to the fears they had over security in the cloud. Luckily, private cloud hosting services easily provide the best elements of the cloud without any of the drawbacks that can frequently scare off investors from the public cloud. Ease of use and ease of mind are equally important to most companies that invest in private cloud hosting services, and the expert security that is ensured by private cloud hosts is one of the many reasons they are so frequently used by larger businesses.
These businesses should make sure that they take steps to keep the most scrupulous disaster recovery mechanisms available to them. A major advantage of cloud computing is the way that records can be maintained fairly painlessly, allowing organizations to seamlessly switch to back-ups in the case of outages or other problems. Using a completely cloud-hosted private hosting solution is a reliable way to keep data from being destroyed under essentially any circumstances, according to Enterprise Storage Forum. These cloud hosted backups can then be used to quickly get a network back into working condition. Simultaneously keeping highly important backups on physical storage is also a good option for companies that are worried about something happening to their data center. Obviously, more copies of any piece of information will always make that information immune to being destroyed by a crash, so any highly sensitive information should have a physical back-up somewhere.
How the cloud is adopted
The use of the public cloud versus the private cloud is essentially teh difference between keeping information in a safe versus in someone else's safe. The utility and security of private cloud hosting is much more in line with the general way of operating that banks have with regard to privacy and security, and there is no way of ensuring that records on the public cloud are being kept as well and as thoroughly as they need to be for a provider that uses a private cloud solution for their data. Another major component of the private cloud hosting model that isn't matched by public cloud environments is the way that private cloud services can highly regiment and restrict data between institutions using the same cloud interface. These kinds of security measures are the foundation of good information management and security, and using the private cloud to safeguard data is highly advisable.
When certain specific parts of data can only be used by verified individuals or groups within a bank, the resulting effect is that there is much less of a risk for a breach of information or even outright fraud committed by a lone employee. Better security means not only protecting consumers, but the bank itself from potential liability lawsuits down the road. By working with the private cloud now, these banks are investing in a future where they have fewer security headaches and better access to information that can directly help them and their clients. Consistent information is, after all, one of the key advantages of cloud computing.