Financial Services Skeptical about Cloud Computing: Report

By: Banking CIO Outlook | Friday, November 30, 2018

FREMONT, CA: The roost.e adoption of cloud computing has been on the rise for a few years now. It would not be wrong to say that the cloud rules the roost.

The financial sector, in spite of following the trend, has been a little slow in warming up to the cloud. A survey sponsored by Cloud Cipher, and carried out by the Cloud Security Alliance notes that none of the respondents have plans to host a majority of their applications or systems in a public cloud.

According to the report, 61 percent of the respondents revealed that their cloud strategy is only in the formative stages within their organization while 39-47 percent said they use a mix of in-house IT, private, and public clouds whereas 18 percent indicated to private cloud being their preferred choice.  

 The survey points to the impact made by customers’ use of electronic transaction channels on the nature of company’s cloud policy; with the stringency of policy directly proportional to the use of channels. Further continuing its analysis of reasons for transitioning to the cloud, the report pointed to 68 percent of the respondents indicating that flexible infrastructure capacity was the priority while 63 percent of them said reduced provisioning time mattered most to them.

The general mood of the firms was in favor of seeing increased transparency and better auditing controls from their cloud providers with 80 percent vouching for it and 57 percent of respondents said data encryption should deserve more attention. Throwing light on the services being adopted during transition to the cloud, CRM topped the list with 46 percent people choosing it, followed by application development at 45 percent and email at 41 percent.

“The responses overall showed a very active market for cloud services in the financial services sector. Cloud has made solid in-roads in this industry with many firms looking to harnessing the power of cloud. There’s plenty of room for growth, particularly for providers who can fill the void for the auditing and data protection controls that are at the top of respondents’ cloud wish list,” says Chenxi Wang, Vice President, Cloud Security and Strategy, CipherCloud.

See Also: Financial Tech Review

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