What are the latest trends in cloud deployment by financial institutions? For now, the real growth in financial institutions lies in the private cloud strategy. CIOs are leveraging existing investments in hardware and software by turning them into an on-demand shared service. The private cloud allows existing enterprise security standards to remain in place, alleviating concern over the real and critical threats of exposing the business, its operations, and data to a broad range of public cloud vendors. As institutions gain experience with their own version of the cloud, trusted business partners offering specific external on-demand services are brought into the mix. Through thoughtful experimentation with private cloud adoption, IT leaders are delivering higher productivity out of their IT investment in the short run. They are also testing the concept of cloud computing with key partners for broader expansion in the future. Although most of the emphasis in cloud computing has been on IaaS, PaaS, or SaaS, many CIOs have developed in-house middleware services for on demand consumption across the enterprise, such as messaging, file transfer services, etc. All of these are among the growing number of private cloud services coming from within the traditional IT department.
Financial institutions are finding public cloud services helpful in meeting niche needs. Analytics are being deployed through public cloud providers that have traditionally only offered installed software. In the capital markets space, vendors of reference data and market data services have moved quickly to offer on demand services—including analytics—to make more informed investment decisions. Another growing offering is Business Process Outsourcing (BPO) as a service, which takes the cloud beyond technology. BPO-as-a-service allows financial institutions access to additional resources on demand and pay as they use services to fill overflow needs such as finance and accounting processes, reconciliations, and back office services. These and other non-core, non-privacy and security sensitive services are moving quickly to public cloud providers.
Cloud computing is already evident within social networking. Most institutions have established a presence on social networks with a proprietary site within LinkedIn, Twitter, Facebook, etc. Through these sites, institutions are able to both provide and receive specific, socially based information that can engage customers in online dialog or discussion and communicate at a depth not possible before.
Read more about how financial institutions are deploying cloud-based solutions in our article, 'Emerging, Evolving or Mutating: Cloud Computing is here to Stay.' Do you think financial institutions will increasingly adopt cloud-based solutions? What issues will have to be ironed out first? Do write in with your thoughts – we'd love to hear from you!