Monday, 28 January 2013

2013 could be year of Cloud apps for Banks

Cloud computing is a model, not a specific technology. Cloud computing, allows companies to access IT-based services via the internet. A cloud-based model provides rapid acquisition, low to no capital investment, relatively low operating costs and variable pricing tied directly to use. 

Cloud computing services operate at several levels: 
  • infrastructure as a service (IaaS)
  • software as a service (SaaS)
  • platform as a service (PaaS
  • business process as a service (BPaaS). 

Cloud computing is expected to be one of the fastest-growing technologies in the coming years. Business applications will be the largest market for cloud services spending, with a gradual transition from on-premise to cloud-based services especially for general business applications like customer relationship management (CRM) and enterprise resource planning (ERP). Banks are expected to enter the cloud computing arena cautiously, with no single cloud services delivery model being a silver bullet for best meeting their demanding business needs.

There are several different “flavors” of cloud, each bringing its own specific implications for banks. 
By offering disaggregated banking services, and moving information, advice and money in a faster, more responsive and more personalized way, these new entrants aim to become the “front office” for customers’ banking needs, leveraging the social and mobile experiences that consumers find so compelling. 

Due to offshore growth in developing countries, a large international bank needed to regularly get new employees up and running on desktop computers. Because of security and other issues, it typically takes about four to six weeks to get an internally configured desktop procured and deployed. And during that time, the employee couldn’t work on a computer. Virtual desktops can be configured and operational in about an hour. In addition, end users now remark positively on the more service-oriented approach they encounter when engaging with their IT teams.

Due to the nature of computing, a large international bank that was paying for a massive amount of physical IT infrastructure found much of its IT space was unutilized at any given time. Now, the bank uses cloud computing to pool resources and share infrastructure and CPU globally. Internal groups only pay for what they use, with flexibility and elasticity now built into their usage patterns.

There are three ways service providers most commonly deploy clouds:

  • Private clouds. The cloud infrastructure is operated solely for a specific company. It may be managed by the company or a third party and may exist on or off the premises. This is the most secure of all cloud options. 
  • Public clouds. The cloud infrastructure is made available to the general public or a large industry group and is owned by an organization that sells cloud services. 
  • Hybrid clouds. The cloud infrastructure is composed of two or more clouds (private or public) that remain unique entities but are linked in order to provide services.

When a bank moves into cloud computing, there are two primary challenges that must be addressed:

  • Security. The confidentiality and security of financial and personal data and mission-critical applications is paramount. Banks cannot afford the risk of a security breach.
  • Regulatory and compliance. Many banking regulators require that financial data for banking customers stay in their home country. Certain compliance regulations require that data not be intermixed with other data, such as on shared servers or databases. As a result, banks must have a clear understanding of where their data resides in the cloud.
EnggDeveloper Mark Technologies, provides cloud based solutions for Non Core Banking Finance sector. Our software is developed in .NET platform and is highly scalable. We also offer complete hosting solutions. For further information, please send us an email.

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