What is the cloud?

Cloud can be described as a big interconnected network of computational power. Cloud can be utilized in different ways for example Cloud Storage and Cloud Computing. According to Wikipedia RF1, Cloud Computing can provide its services in different ways Like Infrastructure as a service (IaaS), Platform as a service (PaaS), and Software as a service (SaaS). Why it is beneficial for companies to use clouds? Companies can depend heavily on cloud services for the massive benefits that the companies can utilize from it like:

Fast and easy deployment :

When using cloud-based services deploying a new product to keep up the market is never been easier since as an IT department, you don’t have to worry about the hardware requirement. Hence you can cut down the cost of buying new infrastructure or even doing a simulation to measure if the existing hardware is enough for you. The cloud should be able to distribute the load among its nodes.

Cut Down The Cost:

Since cloud services are based on the disturbing load you don’t have the problem of having too much or too little resources as you can adjust your needed resources. Furthermore, some services let you pay as much as you use which could save more money. In addition, we should consider the cost we are saving of maintaining the servers in case of not using the cloud services. Companies can take advantage of the cloud without having to manage and invest upfront capital in a complex on-premise deployment.

Bandwidth limitation :

As a big corporation network bandwidth is really important since the last thing you want is to have your network experiencing bandwidth overhead. This will result in a very slow response time. Instead, we use the cloud to distribute the load over the nodes and have a much more bandwidth limit. In this way, you move the load away from the company servers which will save money and time. Thus moving big data will be much faster, easier, and more reliable.

Redundancy  :

Data is the infrastructure that the companies operate. So having a backup data center is essential for any company. But data centers are really expensive to build and maintain. Having a backup data center up and running all the time synchronized with your primary data center is not an easy and cheap task. Therefore having a cloud storage service hosting your data seems like a good idea especially that so reputable cloud storage provider will always ensure that your data is stored on multiple machines and in compliance with any regulations that apply to your industry (for example, some businesses may be required to have up to three copies of all data). But there’s more to it than duplicating information RF2.

Ease of use :

In some start-up companies, they don’t have to budget to build and configure their own servers. Therefore using a pre-configured service would save money and time to quickly use the service without having to worry about configuration. Furthermore some cloud services providers Like S3 “Cloud Storage” provides an easy cross-platform GUI which comes at a really reasonable price for the business. Even more, some big- corporations may need to add or remove infrastructure to meet specific demands, such as RF3

  • Seasonal customer traffic loads
  • Sudden “crunch time” IT demands
  • Growth of business staff using your company’s apps

If you’re relying on in-house IT infrastructure, you won’t have the flexibility needed to make quick changes to your infrastructure.

The Theory

How the cloud could be beneficial in the banking sector ?RF4

Considering most banks have multiple branches doing the same transaction, again and again, IT can use cloud as a central server so every bank can send their transaction to be performed in the cloud. Furthermore, some cloud services come with built-in compliance and security-sensitive financial workloads are no problem for maintaining efficient deployment and operations. Hence the user can communicate with the server using the API which will provide support for 3rd party apps to give the user more flexibility. 

Windows Azure is providing its services to the banking sector to benefit from T24 as a software as a service platform SaaS. Temenos with its services called T24 on the Windows Azure platform will allow banks to move operations to a consumption-based pricing model and enables them to scale resources effectively and increase volume according to customer demand.

What is the benefit of using the cloud as a central server for all transactions?

Flexibility and scalability: Cloud will allow the banks to adjust their resources according to the market need either to upscale or downscale. The ability to respond quickly will be an important competitive edge.

Increase efficiency: Using the cloud will give the ability to the banks to adopt and integrate new technologies very fast to fulfill their customer’s needs. Serve clients faster: When using cloud services it’s faster to develop and deploy new apps.

Cut down the cost: being able to use a consumption-based pricing model will save money for the banks during low load days instead of having the upfront investment for a resource you might not need during the whole year except seasons time.
Redundancy: As we mentioned before that redundancy is crucial in the banking sector cloud will guarantee you almost 100% UPTIME depending on the provider. So reputable providers might even provide 2 – 3 duplicates. Hence your bank will never miss any important transaction.