Cloud Computing in the Financial Industry
The financial industry is not opposed to the growing popularity of cloud computing. Larger financial institutions have seen cloud technology positively impact some of their sectors, such as insurance and banking. They may not be yelling from the rooftops, but they agree that the cloud phenomenon has helped them simplify their operations and work more efficiently.
Skyhigh Networks conducted a survey to determine how comfortable financial companies are with using cloud technology. According to the survey results, the average financial services company operates more than 1,000 cloud services.
The report is based on survey data from 3.7 million employees of banks, insurance companies, credit card companies, and other financial institutions. But what are the reasons that make it easier for these companies to use cloud-based services?
What are the advantages of cloud computing for the financial sector?
There is no question that security is the number one concern when adopting new technologies, especially cloud-based offerings. Today, however, many companies are moving to the cloud to strengthen their security infrastructure.
With the number of data breaches and cyberattacks increasing each year, it is difficult to protect a foolproof IT environment from hackers. In a traditional IT setup, something as simple as an email phishing attack can bring the entire network to a standstill, albeit in a nifty way.
Cloud Computing offers a highly resilient security architecture and undergoes strict security reviews at regular intervals.
Cost optimization may not be a priority for this industry, but you certainly can't complain about the added benefits that the cloud technology package brings. The cloud will help reduce the costs of servers and data centers, and other central IT infrastructures. This eliminates the total cost of ownership and infrastructure maintenance.
Storage and Big Data
Storage is one of the most significant advantages of moving to the cloud. The financial industry generates incredible amounts of data every day through millions of card transactions, stock exchanges, loans, insurance documents, and payments. Unlike traditional IT facilities that require constant updates and maintenance, cloud computing offers unlimited storage space to ensure that companies do not have to worry about increasing volumes of data.
While financial institutions have more than enough resources allocated to all the tasks they perform efficiently on any given day, they may at certain times see spikes in different sectors. They can also increase when their respective governments announce new or modified policies in the financial industry that call into question the efficiency of their resources. Cloud computing scales resources very efficiently without any intervention to ensure that tasks are carried out without interruption.