More and more of our corporate clients have a move to the cloud as a priority for this year. Where cloud was a conversation point it is now a goal.
Yet, while the desire is there doubts remain.
Data security remains a primary concern – with breaches at leading cloud providers remaining a point of concern.
However, in practice data security challenges are often a bi-product of regulatory concerns that have a broader impact
Data privacy regulations
Amongst other factors, data residency requires that data is stored within the country of residence of a consumer, unless good business reasons and / or permission exists to store it elsewhere.
This creates a burden on companies using cloud that must now understand how data flows across borders and must manage the regulatory differences of these differing geographies.
Cloud computing equals outsourcing
Regulators in the US and other jurisdictions see cloud computing as equivalent to outsourcing control of services and data. The implications under US law are that the corporation remains liable for mishaps, such as data breaches, that may occur in the cloud, although they have less control over the infrastructure and security controls that may be in place.
Security is not the only concern
The sheer size and scale of existing technology investments can limit both the scale and speed of the move to cloud.
The mainframe remains a core transactional platform for many large organisations. Many companies may have large, complex enterprise data warehouse environments and need to do a lot of risk assessment before making a decision to move this data to the cloud.
Where the cloud may work well for these kinds of companies is to off load computing power at busy periods, such as month or quarter end, rather than investing in hardware that may stand idle much of the time.
This means that a hybrid on-premise and cloud environment will be a common compromise. The ability to optimise how cloud data is stored is critical to managing costs, but also helps to manage regulatory and similar risks.
Ultimately, the drive to cloud will succeed, or fail, based on your ability to understand and govern your data, in-premise and in the cloud.
Come and join us at the Banktech Conference 2020 in late February where will be covering this topic along with some ideas to address the issue.