Banks Resist Cloud Technology to Retain Control
by Stephanie Faris on Monday, March 09 6:00
The delay Is often attributed to one thing: control. While banks aren t alone in that feeling, financial institutions seem to feel more strongly than other types of businesses that such a move means giving up power over their information. As long as servers are in a building they control, these banks feel that their sensitive customer information is safe.
Data center relocation specialists may have been among the first to notice this trend, but recent studies have supported it. One study surveyed 20 banks about their cloud adoption usage and found that rates are slower than in other industries. Between the third and fourth quarters of 2014, cloud adoption increased only 11 percent among the companies surveyed.
Industry insiders noted an increase in cloud usage among mortgage companies, which tend to use cloud-based applications while still maintaining an on-site back end. Community banks, however, seem to routinely state a preference for having their servers stored inside their own building, where they can access it personally if they need to.
Security Concerns Remain
Despite industry assurances, some businesses continue to feel as though cloud storage isn t as secure as on-site solutions. Even when hiring server movers, businesses want to make sure they know exactly who will be physically handling their equipment. Once businesses migrate to the cloud, they lose the day-to-day oversight that comes with having physical possession of the equipment. A cloud provider likely moves servers on a regular basis without notifying the businesses with information stored on those servers.
Data destruction is also a concern for financial institutions, which now know that data isn t easily removed by simply erasing disks. Qualified data center movers have a multi-step process that involves degaussing the drive, then shredding it if requested. This ensures data doesn t unintentionally fall into the hands of a third party, resulting in a devastating data breach for the company.
Reassurances from Cloud Providers
If a financial business chooses to send date to the cloud, it s important to clarify security procedures, including hard drive erasure and destruction. If a cloud provider can give a financial institution the reassurances it needs to make the move with confidence, cloud technology may be a great option. However, as mortgage companies have realized, a cloud-based front end with an on-site back end is a great way to enjoy the flexibility of the cloud without sacrificing that control that helps bank managers sleep at night.
If a business chooses to move part of its operations to the cloud, it will inevitably be left with extra equipment. A server moving company can help responsibly recycle that old equipment, safely destroying all hard drives and keeping the business from having to deal with taking the equipment off site itself.