Cloud, a technology which had conceptualized as early as the 1960s, is a trending topic in recent times. As more and more Banks are tuning themselves to become digital, one of the common requirements we hear from Banks is to “Host Applications on Cloud”. Most banks in their foray to become digital consider Cloud as one of the important element to digitization. So what is Cloud? Well, Cloud has many definitions, to put it simply it is a pool of resources which are shared amongst multiple consumers which can be Banks. Resources here refers to servers, networks, storage and so on. Key advantages in Cloud, to name a few being – cost effectiveness in the form of pay as you use, on demand, no capital expenditure to the Bank for setting up the premise, no hassles to host/manage the server, load balancing features. The Cloud advantages are multiple and co-exist.
‘Cloud Services’ is a broad term for the bouquet of resources offered to the consumers within Cloud. The Cloud Services falls majorly into three main categories Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS).So what does each of the services offer? As the name suggests – Infrastructure as a Service, the infrastructure is offered to the consumer, Platform as a Service– the platform to host the application is provided to the consumer, Software as a Service – Application which is already developed is available for consumption.
How does this apply to Finacle? Well, Finacle is Cloud ready. Finacle is offered as Software as a Service. Being Cloud ready ‘Finacle’ has the ‘Edge’ to be hosted by any cloud provider.Given the advantages of Cloud, there is still an element of hesitancy within Banks. One of the concerns being, Security. Some of the concerns around security being data breaches, colocation (space where hardware, servers for multiple consumers exists), a location of the premise. Most of the Countries have restrictions to have data servers located outside the country. Given the rise in the Cloud Adopters, it becomes the responsibility of the Cloud Provider to address security by ensuring firewalls with appropriate security policies, has Intrusive Detection Services and Intrusive Prevention Services in place. Whilst, Detection Services takes care of detecting the security breaches, a vulnerability in Cloud, Prevention Services monitors the Cloud to prevent any network attack. These combined with other enterprise controls provide a secured Cloud. Cloud Provider takes care of the overall security, the parties to the Cloud like Auditor, Broker, and Carrier ensures that the security is met and sustained. Cloud Audits needs to be conducted at defined frequencies to evaluate the controls in place for security, performance, privacy within the Cloud. Security will and always be a concern not only for Cloud but also for any in-house / on-premise deployment. With the conduction of such audits, there will be more confidence in Cloud and ensure more adoption to Cloud.
To conclude, how does Cloud help banks in their digital strategy? Cloud is the start point for the foray to digitization. The gamut of advantages that Cloud offers makes it an indispensable proposition. The elasticity and interoperability of Cloud allow banks to deploy newer applications, roll out new products and services which give head away start to digitization. The digital buzzword is pushing banks to break the monotony and give way to the changing times. Banks, why wait for? ComeLet’s go…Cloud.Tags: Cloud, Fintech, PaaS, SaaS