Cloud computing is not a new name anymore, and its adoption is growing consistently across various industries.
Public cloud is a disruptive technology, irresistible to the Financial Services Industry (FSI) due to its tremendous benefits, including agility, elasticity, time to market and on-demand provisioning, to name a few.
However, there are genuine concerns about the cloud’s adoption in FSI, and cloud providers are also innovating to meet the challenges faced by FSI.
What are the challenges faced by FSI?
Finance is a business with a high risk of exposure in terms of money, volume of customers, reputation, fraud, crime, and direct impact on economy, hence making it a highly regulated industry.
Considering the above risk factors, FSI has various concerns regarding security, compliance, location of data, vendor lock-in, fear of losing intellectual property, and control on critical core banking systems when it comes to adoption of the public cloud.
According to a report published by ENISA in December 2015, data confidentiality, data breach, compliance, and legal issues were the major concerns for FS clients, and they were more prone to use non-financial applications in public cloud – for example e-mail, software development, and software testing.
Another reason for sluggish adoption of public cloud in FSI are those long-lived legacy systems that need a tremendous amount of expenditure and effort for migration.
What is currently happening in this space?
The perception of public cloud security is changing, and it is becoming accepted that cloud providers do maintain security that often exceeds the security capabilities of private data centres.
On the other hand, regulators have also shown their confidence of the public cloud. Financial Conduct Authority (FCA) released guidance in July 2016 for firms on use of cloud service providers when it comes to outsourcing.
This is encouraging for FSIs and (Read more...)
*** This is a Security Bloggers Network syndicated blog from The State of Security authored by Tripwire Guest Authors. Read the original post at: https://www.tripwire.com/state-of-security/security-data-protection/adoption-of-the-public-cloud-in-the-financial-services-industry/