Cloud Computing Services Providers in a Financial Setting

In a field where privacy of customer information matters so intensely, many are hesitant to trust security to off-site providers—even though studies show that cloud servers tend to be just as secure as on-site servers. On the other hand, financial services providers use many applications at different times, and can benefit greatly from the cloud's scalability. Balancing these concerns is the key to a company's success with off-site servers.

Security Concerns

In the financial sector, storing customers' personal information carries important liability risks. Having a hacker access data can go far beyond customers receiving unwanted spam; it could cost those customers thousands of dollars or more. Not only does the company face liability for those losses, but it also risks a significant loss in goodwill and client trust.

The truth, though, is that cloud security tends to be stronger than individual server protection. A cloud computing services provider's most important task is data storage, and they typically keep security patches and updates more current than even the most conscientious on-site IT department. While the company has a duty to backup and secure their own data, concerns over potential breaches usually far exceed their likelihood.

Efficiency Advantages of Cloud Computing Services

Financial companies that utilize cloud services have an advantage over those who are managing everything internally. Part of this is simple scalability. Cloud computing services allow companies to adjust storage size and application usage to meet their operational needs. Organizations that have busy peak periods, such as at the end of the year and during tax time, can achieve significant cost savings by scaling usage up or down based on workload.

Private Cloud Solutions

For many financial services organizations, private clouds are emerging as a solution. Rather than trusting sensitive data to an outside organization, the company will maintain control of its own sensitive files and information. Of course, this option requires greater vigilance, but companies can provide better peace of mind to their clients.

In addition, cloud computing maximizes the cloud's economies of scale. Companies can maintain green operations by limiting on-site energy usage, paying only for the services they need, when they need them. This enables a financial services company to provide each client with custom-tailored applications that suit their needs, rather than investing in a one-size-fits-all solution. When approached correctly, cloud computing makes financial organizations more efficient and effective.

If you need help finding a cloud computing services provider, contact us today.