As digitization has overpowered industries and common masses, the banking, finance, and insurance sectors have also decided to move to the cloud. Cloud Computing not only affects the way that a business stores its data, but also how it operates. Cloud provides flexibility, easy access, and a higher level of security. So, the cloud seems to be the best way to cope with such a huge workload.
The internet has its own set of drawbacks, including security. So, there is a lot that can hamper your personal space. In this article, you will get to know cloud computing, and the advantages and disadvantages of cloud computing in BFSI.
Importance of the cloud?
Traditional computing is sidelined as computing workloads continue to merge with the cloud. Public cloud services are offered by local vendors, whereas an enterprise builds a private cloud to charter others.
Analyst Gartner predicts that by 2022, cloud application infrastructure (also known as PaaS) will expand to a $58 billion industry. The global cloud services stood at $227.8 billion in 2019, which is forecasted to grow to $266.4 billion by the end of 2020.
However, there is still conflict on the real number of the demand for cloud services. Most of the people who opted for cloud services are manipulated by the vendors to sell their products.
Advantages of Cloud Computing for BFSI
Cloud computing is a revolution that is impacting almost 70% of the businesses worldwide. Many financial institutions have also considered cloud computing as a reliable source for computing services. The main concept of cloud computing revolves around various systems connected to the internet or any communication network. This theory enables a program to run in other systems at the same time. Cloud computing is beneficial to both large and small banks and financial corporations.
Cloud computing curtails capital costs and huge upfront infrastructure expenses. So, financial corporations and banks can concentrate on important business deals and projects. In cloud computing, banks and the financial corporation do not require to buy budget shortening hardware.
Cloud computing helps financial corporations and banks make a rapid adjustment to their reserves in case of unexpected and dynamic business requests. It also uploads applications faster due to enhanced management of cloud computing without maintenance.
The cloud computing system is very beneficial for banks and financial corporations. It is due to building a wide enterprise availability that is important to continue a business investment.
Mergers and acquisitions are steady in the banking industry. Scalability and integration both are important and secures a unique position in cloud computing. The cloud is an inexpensive concept that can surge IT operations as per the company’s requirement.
Cloud computing enables easy use of data. A massive amount of data is feasible to use in banks. Cloud services support banks and financial corporations to regulate the high demands in the banking industry.
Disadvantages of Cloud Computing
Downtime is one of the most significant drawbacks when we talk about cloud computing. As cloud systems run on the internet communication network, service mishaps are common and can happen anytime.
Security breaches and lack of privacy
Cloud services enforce the best security norms and enterprise certification. However, the storage of data and other important files in an external service provider brings risk. The data-related discussion should honour privacy and security, especially while managing confidential data.
Every cloud service provider is bound to secure the infrastructure with the help of professionals.
Cloud computing means everything is present online, which uncovers potential exposures. Even with the best IT professionals, a company can face attacks and other forms of security breaches. No cloud vendor checks your managerial capabilities before permitting an account, so falling for an attack is quite normal.
Cloud Computing Security
Most of the companies stay troubled about cloud computing security. However, there are limited cases of security breaches. Cloud computing security largely depends on the security of existing systems. In house systems operated by a team, it is more likely to have a misstep than a system observed by the cloud provider engineer dedicated to securing the infrastructure.
However, concerns do remain when it comes to Banking, Insurance, and specially, finance Services that keeps moving the data between cloud platforms. This has stimulated cloud security tools to identify defrauding use of data, unauthorized downloads, and malware.
This brings us to the end of the blog on advantages and disadvantages of cloud computing. The intriguing notion of cloud computing includes numerous computers with an internet connection or any communication network. This notion enables a program to run on different computers at the same time. Cloud computing can be the next biggest change and can benefit large and small financial institutions.0