Businesses constantly experience the need to expand their operations and widen their customer base. The initial reluctance that companies had towards accepting cloud technologies has now faded. Businesses are realizing the need to incorporate cloud computing to get better speed and higher flexibility of services. Instead of running costly large data centers, companies are today choosing to shift their applications to the cloud so that they can cater to the increasing customer demands. In adapting new approaches to the traditional services, there is likely to be some disruptions. So, businesses have to rethink the innovation processes especially when these are financial firms.

 

How Can Financial Firms Benefit From Cloud Computing Technologies?

Financial firms have many opportunities to use benefits of cloud technologies. They can migrate many applications to clouds; so, non sensitive operations like hiring, billing and travel management tasks can be conveniently shifted to the cloud. Infrastructure operations like data storage and data center management, disaster recovery systems etc may also be moved after you have evaluated the packages offered by multiple vendors. A handful of businesses are now using cloud technologies for core tasks. But various hosting set-ups offered by the IaaS providers are driving more and more financial firms to shift key operations to clouds.

The primary concern that businesses have about the cloud is of course security. The truth is that customer data when stored in remote servers will continue to remain secure. In fact, they would perhaps be more secure than storing data in-house. But, in the absence of industry standards and the simple process of transferring businesses to the cloud, many firms are signing up with inferior cloud services. This may make them vulnerable to security leaks.

At the same time, financial firms are realizing that the key to success lies in innovations. Cloud technologies will always encourage innovations, allowing you to establish a far more agile business. Financial services or banks need to be aware of where the client data is stored. They must know how this data is being handled also. In short, they have to be sure that the cloud vendor will not keep loopholes in the security system so that the data becomes prone to DDoS attacks and other malicious activities. So, for the CIO, the real challenge is to allow businesses to use the flexibility of cloud computing without letting the security getting compromised. The CIO therefore needs to exercise enough controls over the cloud environment operations.

 

For ensuring that data in the cloud stays secure, the financial firms will be adopting specialized cloud hosting services. They will offer a secure ecosystem through which hundreds of applications can be connected to users all across the world. But the broader enterprise applications must also be secure. To do so, the different types of cloud computing, whether it is private, public or hybrid, have to be integrated and managed centrally. Carrying this out independently can be hard for financial firms. They will need support from external services, particularly from the experienced IT personnel. So, any realistic and competent CIO will search for expert partners like a global network provider that has high skills in security, management and connectivity. Businesses will turn towards cloud vendors which have networking skills and quality data centers.

When you have centralized management security for the cloud environment is also enhanced. Clients can access data securely from any part of the world using any web-connected device. Smartphones can be viewed as being as secure as desktops. In this way, the cloud based servers allow businesses to connect securely from fixed lines, Wi-Fi and even mobile phones. For more security, it is even possible to lock down microphones and cameras on the mobile phones. The app store will offer you complete control over what your clients can download or use.

Cyber security has become a major point of interest for financial regulators including Financial Conduct Authority and the SEC. This approach reveals that allows financial firms are starting to understand risks of cloud technologies and they are deploying the right tools and measures to ensure secure trading and data protection. So, cloud computing has turned out to be a boon for the financial world; businesses have the full freedom to innovate within a compliant and completely safe setting.

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