As a result of its valuable benefits, the demand for cloud computing has increased dramatically for several IT industries. For example, financial services firms, including banks, brokerages and securities firms, have made the move to cloud solutions or are examining the process to make such a move.
Although cloud computing could grant financial institutions convenience and flexibility, these highly regulated firms have significant legal and regulatory challenges that IT teams must navigate before moving to a cloud architecture.
At times, instead of achieving cloud computing best practices, IT teams have focused most of their time attempting to fulfill regulatory requirements. Several federal regulatory bodies provide clear requirements for financial services organizations deciding to implement cloud computing, however these requirements are difficult to complete. These requirements include:
- Effective oversight and risk management of outsourced IT functions
- Risk assessment and requirements
- Service provider selection
- Contract issues
- Ongoing monitoring
In order to move forward with implementing cloud architecture, financial institutions must understand the information risks of moving to a cloud-based environment including the privacy of customer data and disaster recovery. Furthermore, it is also important for financial institutions to strategically select the type of cloud infrastructure that best fits the needs of the enterprise.
To learn more about cloud computing in the financial services industry, please read, “Clearing the Haze on Financial Services Cloud Computing” by Klaus Brandstaetter, CEO of HOB. This article provides extensive insight on the challenges financial institutions face when implementing cloud architecture and provides a deeper analysis of the topics addressed in this blog.
Are you apart of the IT team at a financial institution? Have you implemented cloud architecture into your organization? What were some of the challenges you faced? Please share in the comments below.
You must be registered in order to write comments. To register as a new user click here.
If you're already registered, please leave a comment here