ABA Banking Journal - April 2011 - (Page 20)
tech topics | iT risk mAnAgemenT
Clouds in that cloud?
As cloud computing becomes the next big thing, security issues have to be dealt with
by john ginovsky, contributing editor
irst it was software off a shelf. Then it was solutions developed, installed and maintained by providers. The current hot topic in business technology is software as a service, or some other form of cloud computing. They all represent leaps forward in productivity, capability and profitability to banks. What they all have and continue to require, however, is an acute focus on and control of risks. It is pretty much a given that the use of outsourced services delivered over the internet, as opposed to maintaining software and other infrastructure in-house, will grab hold of business. “It’s a tidal wave that’s going to engulf us all within the next five years,” predicts Ron Catrone, senior vice-president and chief information officer, Farmington Bank, Farmington, Conn. Peter Graves, CIO, Independent Bank, Ionia,
Mich., says in his blog “Tech Without Hype,” on ababj.com, that cloud services will be a $160 billion industry by the end of 2011. “There are a lot of positive reasons to adopt cloud computing as a technology or to add functionality,” says L. Randy Marsicano, manager of professional services for WolfPAC Solutions Group, and a speaker at this year’s ABA Risk Management Forum. “It reduces cost in your organization. You don’t have to take on additional hardware. You don’t have to have additional resources. Your time to market is quicker. It’s a way to implement cutting-edge technology without the cost associated with it.” Risks, but known risks As with all technology, there are risks involved. The fortunate thing, though, is that with cloud
20 | ABA BANKING JOURNAL | April 2011
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