Why banks are wary of public clouds

Banks have traditionally kept close control of their IT, supporting large in-house teams and, until recently, building their own datacentres. However, this is set to change as banks look closely at the opportunities and cost savings offered by cloud computing technologies.

Banks are reluctant to adopt public cloud technologies where computing resources are made available, usually on shared infrastructure, to multiple customers and accessed via the internet. But by contrast, there is growing interest in using private clouds (here computing resources are provided exclusively to the bank over a private network, rather than over the internet, and from behind the bank's firewall.

IT security
This is the number one concern of bank IT executives. Banks are reluctant to hand over control of business-critical functions to anyone, let alone public cloud providers.

Public cloud providers have identified this concern and both they and industry bodies such as the Cloud Security Alliance have sought to demonstrate a commitment to cloud security - in particular, through promoting their compliance with recognised security standards for outsourcing.

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Source: computerweekly.com
By: Martin Hayward