Financial Services Firms Still Cagey About Cloud Computing

by Edward O'Brien 0

Cloud computing is becoming more prevalent throughout thefinancial sector but many firms say they are less than halfway to having a firmcloud strategy in place, with controls and security remaining primary concerns.

In a new surveycarried out by the Cloud Security Alliance, How Cloud is BeingUsed in the Financial Sector, 61% of respondents admitted that acloud strategy is only in the formative stages within their organization, with39-47% planning to use a mix of in-house IT, private, and public clouds, and18% planning to use private clouds. None of the respondents have plans to hosta majority of their applications or systems in a public cloud.

The reluctance ofmany of today’s financial institutions to fully embrace and implement cloudtechnology is often the result of the relative newness of cloud computing, andconcerns about reliability, data safety, and security. While today’s FIs are clearly interested inthe potential of cloud computing, they are also concerned about the publicityof cloud sites causing extended downtime at several large sites, as well as thepotential for data breaches. Recentresearch Mercator Advisory Group indicates increased interest by some inconsidering the use of private clouds in select applications, with someexploring possible options.


Overview by Ed O’brien, Director, Banking Channels for Mercator Advisory Group

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