Banks host private clouds to bolster security

The practice of banks outsourcing their incoming customer services calls, or even their portfolio data, is well-established in the financial industry. With the advent of cloud technology, many banks have begun to use managed cloud services for their everyday operations.

However, as reported by Money magazine, many banks are aware that their implementation of cloud technology must come with advanced security measures. In a continued effort to answer critics about soft piracy laws and protect data, banks in the Canada run cloud services with tightly-controlled security measures, as reported by the media outlet.

The movement by banks to the cloud is becoming a more common occurrence worldwide. However, according to ComputerWorld, this transition is likely to marked by larger banks updating to the software gradually. These institutions could favor using existing hardware initially and then moving to the cloud once it becomes a widely-accepted banking tool, the media outlet reports.

Gradual assimilation of cloud technology is not just relegated to banking. However, this rate of change differs from the rapid expansion of cloud software usage in the computer industry. This discrepancy may be attributed to the financially sensitive nature of the the data banks would store in the cloud.