Many financial organizations are adopting cloud computing solutions for a number of reasons. Hosted IT services can offer institutions a unified platform to share information, as well as provide continuous access to important data and documents from any location. Additionally, by utilizing the cloud to perform these functions, establishments can greatly decrease their communication and operational costs.
Before moving assets to the cloud, financial companies should consider and overcome certain challenges.
Aspects to Investigate
Bloomberg Law advised that banks, money managers and other establishments investigate the oversight and risk management aspects of a cloud computing solution. Organizations should examine the risks of outsourcing these kinds of services and create policies to guide the IT process and mitigate any related threats.
In addition, Bloomberg Law also stated that financial institutions should monitor the performance of the cloud computing solution during their contract period with the service provider. Adequate audits of the cloud should be comprised of essential SLAs and the capability of the provider to deliver obligated services, as well as any adjustments necessary to better operate within the environment.
Financial institutions should also pay close attention to any legal requirements imposed upon them or the service provider. According to Bloomberg Law, these can include data protection and integrity, TSP negotiation and privacy concerns. Additionally, establishments also need to consider how users respond to these legal requirements.
Kelly OCG also stated that a potential risk also presents itself when administrators and employees are not aware of the the cloud provider’s data center solution. In order to ensure the safety of the financial institutions’ applications and information, key personnel should have a strong base knowledge of the inner workings of the data center, as well as the facility’s security features.
According to Kelly OCG, before employing a cloud computing solution, an organization should have a service outline prepared which addresses their needs and expectations of services. An adequate framework should include specific functions the institution currently performs as well as how services will ideally operate.
During the implementation process, Kelly OCG advised that financial institutions test the functionality of their existing applications and tools in the cloud one at a time. In this manner, administrators can be sure their essential operational tools work correctly over the new platform.
Financial organizations seeking to migrate assets to the cloud can utilize FlexITy, a top service provider of managed IT services. FlexITy offers solutions tailored to specifically meet the needs of the business as well as industry experiencing in implementing successful IT infrastructures.