At last! Financial services companies hail trust in packaged cloud
By Catherine McFarland • 09 Oct 2014
As predicted by technology analysts at Gartner and Ovum, cloud adoption by financial services companies is on the increase. According to our September survey of 237 directors and managers, nearly one in every five (18%) financial services companies is today using cloud services to protect their IT. So what exactly has brought about this change? And what does it mean for the financial services sector?
Contrary to initial concerns that cloud computing services threatened security, over time, cloud has proven to be more secure than traditional IT systems. So, while cloud remained attractive from a financial and resourcing point of view (businesses could lower their total cost of ownership (TCO) and offload IT management), the potential cost savings weren’t often considered to outweigh the potential security risks.
Packaged cloud specialists for financial services
Unlike, say, three years ago, we’re now seeing a new breed of specialist cloud services provider who has developed an understanding of the requirements specific to the financial services sector. They’re fully aware of the Financial Conduct Authority (FCA) and Information Commissioner’s Office (ICO) rules and regulations, and know what technology works within those confines.
Integration with financial systems and apps
This newfound industry knowledge, means that financial services companies can now benefit from a packaged cloud service that includes complete integration with their financial systems and apps – with Bloomberg desktop, Thomson Reuters, and accountancy packages such as CCH, Quickbooks, Sage and Sun.
Business continuity, IT disaster recovery and backup
Packaged cloud is way ahead of on-premises IT when it comes to FCA rules on business continuity. On-premises technology is very risky when it comes to incidents such as fire, flood or a simple power outage. Onsite servers are exposed and systems and data can be lost. Today, financial services companies can be confident in a cloud provider with the appropriate ISO accreditations (ISO 20000 and ISO 27001). They provide reliable assurance that their cloud provider has adequate and proportionate security controls in place.
Not only does the cloud enable you to work seamlessly during a disaster, it keeps you connected and secure on a day-to-day basis. Today’s workforce spends a lot of time working on the move or from home, more often than not from a personal electronic device. This risks the business’s IT systems and client data – for example if the personal device is not properly password protected or encrypted, and the device is stolen, or it suffers a phishing attack.
Want to find out more? Check out this infographic on ‘The Six Secrets of Reliable Cloud Backup’.
*Cloud Direct surveyed 237 directors and managers of financial services companies in September 2014.
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