Community cloud technology – to ensure scalability, security and business continuity for your financial institution

As the leader of a financial institution, you must make many choices about technology – everything from when to offer mobile money to which credit scoring tool to purchase. One of the most important choices you will make is which core banking system you use. While they are many ways to evaluate core banking systems, there’s an element that is frequently overlooked and not well known: private versus community cloud.

A private cloud model “refers to a model of cloud computing where IT services are provisioned over private IT infrastructure for the dedicated use of a single organization. A private cloud is usually managed via internal resources.” www.techopedia.com

A community cloud model is “a hybrid form of private clouds built and operated specifically for a targeted group. These communities have similar cloud requirements and their ultimate goal is to work together to achieve their business objectives.” www.techopedia.com

Unless your financial institution must use a private cloud model because of regulations, there are several reasons and advantages to opting for a community cloud rather than a private cloud.

Community cloud-based services mitigate your risks

Security, scalability and business continuity are key considerations when choosing the right cloud model for your business. Building a private cloud in your premise or even off-premise exposes your financial institution to several risks and vulnerabilities that could be avoided by moving towards a community cloud-based service.

According to Microsoft, a private cloud, has “an infrastructure being owned and managed sometimes by the customer, but more often by a Cloud Service provider (CSP). The infrastructure is located either on customer premises or, again more typically, on the CSP’s premises. In all cases, the infrastructure from which the data and services are provisioned is for the exclusive use of a customer. While a community cloud “serves members of a community of customers with similar computing needs or requirements, such as security, reliability and resiliency. The infrastructure may be owned and managed by members of the community or by a CSP.”

Community clouds are revolutionary in cloud computing which is focused on enhanced business value and optimal security standards. It is noteworthy to mention that a community cloud delivers the benefits of both public clouds including minimal shared infrastructure costs and private clouds like additional privacy and security levels and policy compliance. There are several reasons and advantages to opting for a community cloud rather than a private cloud:

  Community cloud versus private cloud

Visionary financial institutions around the world are moving to the cloud to make their operations more secure, more efficient and more affordable. Ready to join them?