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What should financial institutions look for in a cloud provider?

Financial institutions can benefit immensely with the right cloud partner.

Financial institutions can benefit immensely with the right cloud partner.

Cloud has always presented a great deal of potential in the financial services industry, but the rate of adoption has been slower than in some other sectors. Due to the sensitive nature of financial systems and the data they hold, organizational leaders have historically been wary of handing control over to a third party or hosting critical platforms outside their sphere of influence.

Times have changed, however, and the financial industry has, in general, come around to the cloud. With more banking institutions than ever reviewing their cloud options, how should they go about selecting the right vendor for their needs? What should they look for in a cloud provider?

Appetite for cloud services on the rise

The best IT cloud solutions provider will be the one that meets an organization's specific needs. The cloud can address a number of major pain points for banks and other financial services institutions. In fact, the benefits of this technology are so impactful that the industry has done a complete 180 on how it views the cloud.

That mind shift is partially attributable to certain myths about cloud security finally being put to rest and giving compliance officers peace of mind that hosted assets enjoy ironclad protection.

Perhaps the most important driving force behind financial service cloud adoption is the ability to reduce infrastructure and operational costs by placing assets in the cloud. As a recent Capgemini study revealed, many banks want to reduce their reliance on internally managed data centers and expensive IT hardware, as well as the ongoing maintenance costs that entails.

With that in mind, organizations should begin their search by looking for cloud providers that can significantly minimize their use of in-house IT teams and assets and help lower operational expenses.

Interest in cloud computing services continues to grow in the financial services sector.
Interest in cloud computing services continues to grow in the financial services sector.

Redundancy in case of failure

Downtime isn't just harmful to financial institutions – it can be downright devastating. On average, a single hour of downtime costs more than $100,000, according to Information Technology Intelligence Consulting. Banks simply cannot afford to deal with prolonged service disruption. That's why an ideal cloud provider will offer business continuity services in the event of a disaster, allowing customers to failover to other systems and continue operating normally.

Redundancy is a key asset to have in today's always-connected world, and the cloud can give it to you.

"Redundancy is a key asset – the cloud can give it to you."

Coverage for compliance and security

As much as any industry, the financial services sector must account for security and compliance demands. Banks face extremely rigid regulations detailing exactly how sensitive financial information is stored, accessed and protected. The last thing these institutions want is to fall victim to a cyberattack or run afoul of a probing governmental audit.

Your IT cloud solutions provider should ease any concerns related to security and compliance by strictly adhering to regulatory requirements and cybersecurity best practices. The cloud is not inherently vulnerable as long as your vendor diligently follows the latest trends and leverages the most advanced and comprehensive security measures.

The ideal vendor will be one that understands your organization's unique needs and requirements and can readily meet them. For the best IT services NYC has to offer, contact TEKConn today.