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Financial services firms urged to consider ramping up cloud investments

DTCC whitepaper claims financial services firms that shun cloud are at heightened risk of running into resiliency, security and performance issues.

Improvements in the performance, resiliency and security offered by the public cloud means financial services firms that continue to rely on private datacentres risk falling behind their competitors, it is claimed.

A whitepaper, published by The Depository and Clearing Corporation (DTCC), says the gap between the security and resiliency capabilities offered by private datacentres and public cloud providers is widening.

As a result, financial services firms that remain wedded to their on-premise IT systems could be at heightened risk of downtime and security breaches.  

“Cloud computing has reached the tipping point as the capabilities, resiliency and security of services provided by cloud suppliers now exceed those of many on-premise datacentres,” the whitepaper stated.

“The combination of technology commoditisation with the scale and competition from public cloud suppliers is driving the unit prices of computing, storage and network services towards zero.

“This gap will continue to grow at an accelerated rate, leaving laggards in cloud adoption at increased risk from a resiliency and cost perspective,” it added.

This shift has altered the way organisations talk about cloud over the course of the past decade, with conversations about the safety and security of using it giving way to discussions about how shunning the technology could negatively affect an organisation.

“The question of the past 10 years has been, ‘is it safe to move processing to the cloud?’ Today, that question has become: ‘What compromises are market infrastructures making by maintaining processing in on-premise datacentres?’”

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These collective realisations have prompted the DTCC, a US-based provider of data processing services to the global financial community, to ramp up its use of cloud to lower costs and boost the integrity of its IT systems, the whitepaper revealed.  

“The DTCC intends to strategically expand the leverage of cloud technology across a much greater range of its services and applications over the next three to five years,” it said.

The organisation has been using cloud technologies for around five years already, and believes its will confer a number of business advantages on other firms in the financial services space that follow in its footsteps.

“The maturation, expanded offerings and enormous scale of the technology resolve the privacy and security challenges of cyber threats, potential flash crash type market disruptions and the cost challenges facing many financial firms today,” the document said.

“DTCC is taking this step because it is confident the security, scalability, resiliency, recoverability and cost of applications in the cloud are better than almost any private enterprise could achieve on its own.”

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