Customer Relationship Management Essay

5432 Words May 1st, 2013 22 Pages
Banking on the Cloud

Banking on the Cloud What exactly is Cloud Computing? Finding cost savings in the Cloud What opportunities does the Cloud create for banks beyond cost savings? Having confidence in Cloud Computing A journey not a destination 3 5 8 9 12 14

Banking on the Cloud
Cloud computing is one of the hottest technology and business topics today, and the market for cloud services is expected to skyrocket in the next few years. At its most basic, cloud computing can enable banks to reuse IT resources more efficiently—whether they are purchased up-front or rented without any long-term commitment. According to research firm Gartner, this market for cloud services will increase from $36 billion today to $160 billion
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Although the term “cloud computing” is relatively recent, elements of the concept, such as timesharing and virtual machines, have been around for several decades. What makes cloud computing real now is the pervasiveness of the Internet and Internet technologies, virtualization, hardware commoditization, standardization, and open source software. A key catalyst is the success of major Internet companies such as Google, Amazon and Microsoft. The highly global and scalable infrastructure these companies have built to power Internet search, electronic commerce, social networks, and other online services forms the core of cloud computing. In tandem, a cadre of capable, credible pure-play firms has emerged— and Workday among them. Characteristics of cloud services include the following: • Little or no capital investment required • Variable pricing based on consumption; buyers “pay per use” • Rapid acquisition and deployment • Lower ongoing operating costs • Programmable. Clouds can take two forms: private and public. For most banks, the first major foray into cloud computing will be via private clouds. Indeed, in a survey of IT executives at tier-one banks, 83 percent of participants saw private clouds as their first priority2. Private clouds are built within a company’s data center and are designed to provision and distribute virtual application, infrastructure and communications services for internal business users. These service components are highly

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