Cloud computing continues to dominate conversations in the banking industry worldwide, and the cloud concept is gaining increased visibility among banking IT executives.
Cloud computing is a model for provisioning and consuming IT capabilities on an as-needed basis, allowing the cost to shift from a capital expenditure to an operating expense and making it possible for organisations to become more agile.
Most financial institutions—especially the largest ones—are under extreme pressure from regulators to make immediate changes to their processes, risk management procedures, reporting capabilities, and levels of transparency. Many are therefore turning to packaged-integration providers to migrate and integrate both on-premise and cloud-based applications.
Today, the trend for most organisations seeking to become more agile is to virtualise as much of their internal infrastructure as possible. Integrating cloud-computing applications with on-premise legacy applications is the next step in the adoption curve; this implies converging virtualised servers, storage, and network resources into a single, virtual pool that can be drawn upon as needed. Adopting cloud computing can be a daunting challenge for financial institutions, and legitimately brings concerns around compliance, data privacy, and security.This white paper, prepared for IBM by Aite Group, analyses how chief information officers (CIOs) and banking IT executives should look at integrating cloud computing as part of their IT strategy. It also describes scenarios in which cloud computing can be effectively leveraged.