Cloud computing is starting to become the de facto standard in most industries. Whilst it was once perceived as a niche concept, the amount of attention cloud computing has received in recent years has convinced the IT community of its merits. Yet the finance industry still lags behind others where cloud uptake is concerned. One study from earlier this year, for example, found that 39 per cent of financial services CIOs had not started developing a cloud strategy.
This is particularly surprising when we consider the potential that cloud has for the finance industry. Banks and financial institutions deal with huge amounts of data – from customer details to stock transaction prices and everything in between. As the sheer amount of data continues to grow, it becomes more important to put the right tools in place to handle it. Indeed, after surveying CFO technology needs, Gartner claimed that most of the deficiencies CFOs face can be addressed by improvements in data analytics. Unfortunately, legacy IT systems are often unable to handle such large amounts of data.
Thus it is clear that in order the reach a future of data-driven banking, where business intelligence helps banks to make sense of the data they gather, a new system needs to be put in place: a system of cloud computing. In order to collate and analyse large data sets, banks will need to have the capacity, elasticity, computing power, and agility that cloud can uniquely deliver. This means that a switch to the cloud should be a priority for CIOs in banking and financial services.
There is, however, no ‘one-size-fits-all’ solution when it comes to cloud. There are a variety of different models, including public, private, and hybrid – each of which can be adapted to suit the customer’s unique needs. Choosing which framework to commit to, however, can be a difficult task. Indeed, recent research from Trustmarque found that over two thirds (68%) of CIOs in the finance industry believe that it’s become increasingly difficult to understand what technologies to use. This means that committing to either a public or a private cloud framework without an understanding of their different merits may be a risk. A hybrid cloud solution, however, may be useful for banks and other financial institutions, since it can offer the security and access of a private framework, with the flexibility to move data into a public cloud to adapt to changes in demand.
If you’re in finance and interested to know more about what benefits cloud computing can deliver to your organisation, contact Trustmarque on 0845 2101 500, or email firstname.lastname@example.org.