The following report elaborated the concept of cloud computing in the context of the banking sector. It provided the basic definition of cloud computing. Organizations consider cloud solution as a hybrid development in the field of computing that can be used for any computing service like servers, software, storage, analytics, database, networking, and so forth by making use of the Internet. This report outlined some of the main advantages and disadvantages of cloud computing. These are summarised below:-
24x7 access to the information from anywhere:
Require high-speed internet
Data Security Issues
Easy to Setup
Dependency and Control Issues
The report also provided some important proposal regarding the implementation of cloud services within an organisation.
Cloud computing is a widely used technology that is useful in eliminating the problems associated with the storage and management of the data. It is a hybrid development in the field of computing that can be used for any computing service like servers, software, storage, analytics, database, networking, and so forth by making use of the Internet. This report will study the consequences and impressions of cloud computing. For the study purpose, it will study the case of "Commonwealth Bank of Australia” which is the multinational bank operating in many countries of the world, such as the UK, US, etc. The following report will provide a thorough understanding of the problem statement, literature review to evident it, and lastly, it will be discussing the outcomes and proposal in an elaborated manner.
The Commonwealth Bank is the Australia-based multinational bank that operates in countries like New Zealand, the US and UK, Asia, and many more. The companies headquarter is located in Sydney. The organisation employs more than 51000 employees in 2017 and its revenue last year is 2600 crores AUD. It has many subsidiary branches all over the world and two such examples are Bankwest and Commonwealth Securities.
One of the major breakthroughs in the field of data management was the invention of "Cloud Computing." By making use of off-site computer systems and other infrastructure as a platform for storing data, one can access information from the networked application, and carrying out operations based on the off-site data. The report is highlighting the problem statement “cloud computing technology and its various impressions & consequence.” The topic is significant because cloud computing technology is penetrating each and every sector and impacting their traditional ways by modernising them. According to Ali, et.al, (2015). , cloud computing provides data across an expanded and complex network of computers, thereby enabling the businesses to carry out computing operations at any time, anywhere. According to the Australian National Data Service (ANDS), 60% of Australia’s IT industries are trusting the cloud computing. In addition to this, nearly 80% of the enterprises and organisations are making use of the cloud platforms in order to get their data stored. It also said that by 2020, public cloud computing will experience a global growth of 44%. The reasons for such a remarkable growth are many but the two of them are cost-effectiveness and the ease of data access. However, there are many downsides of the cloud. The major of which is data breach and security issues. This report will mention the impressions and consequences of cloud computing in the context of the banking sector. For that purpose, it will discuss the advantages and disadvantages of cloud services. In addition to this, proposals will also be provided in this report.
The major objectives of this report are enlisted below:
According to Ali, et.al, 2015, the advent of the cloud services has made the majority of the industry to employ technology in their ways of operating things and the banking sector is one of them. At present, almost every bank stores its data on some cloud services, thereby migrating from their traditional operandi of business. Cloud computing solutions have simplified the use and maintenance of the IT infrastructure that the banks use. There are many characteristics of cloud computing highlighted by Zissis& Lekkas, (2012). in his study. The first and foremost characteristic of cloud services in the context of the banking sector is that it provides powerful computing aid along with high storage capacity. The data and computing services across a large number of the computer network and accomplish the computing tasks that are impossible to be done by making use of traditional computing solutions. The latter has limited storage and computing abilities while the cloud can offer large data storage.
Another characteristic of cloud is lesser equipment needs of the organisation. One of the major benefits of cloud computing is that one can access information without needing the ownership of the technology or IT infrastructure. One can easily do that by having a computer system with Internet access. The third characteristic is all about resource sharing. The cloud service provider manages their resources of IT to develop a resource pool which is called the cloud. These resources are further allocated based on the user's application. The users will access the resources from the pool and pay according to their cloud service usage.
Talking about the banking sector and its dependency on cloud services, banks provide a wide range of services that are based on the cloud. For instance, retailing services, institutional banking, pension data, insurance data, funds management, brokerage services, etc., are widely dependent on cloud services. All the data regarding the aforementioned services are stored in the cloud storage. Many banks including the Commonwealth Bank of Australia started its cloud transformation way back in 2009 and the decision turned out to be a major breakthrough for the bank. It has helped the banking sector to increase its focus on customer engagement and services. It empowered the customer to use banking services from anywhere through online platform Zissis & Lekkas, (2012). CBA has transformed its IT infrastructure by revitalising the customer interface. It has launched both online and mobile banking platforms by consolidating the data centres and automating back-end core abilities.
The IT transformation has helped banks to manage the market uncertainties and increased the reliability. Many banks have gained a better market position just by transforming their businesses and arming it with the cloud computing solutions (Toosi, et.al, 2015). It has helped the banks in optimising core processes and resource. However, the organisations were a bit reluctant to implement the cloud services in all the operations as there are many risks associated with it.
24x7 access to the information from anywhere:According to Zissis&Lekkas, (2012), cloud services has enabled the organisations and their customers to access the information directly from their devices irrespective of time or location. A system with an access to the Internet can make this possible for them to access the information round-the-clock.
Huge Storage: the organisations are growing at a rapid pace and to maintain it, they require something where they can store their humungous data. As the information and data are increasing, the organisation require a storage device with almost infinite capacity. The traditional computing devices are unable to store such extensive data. Therefore, cloud solutions turn out to be very useful and handy for the organisation. It provides a huge storage space for the organisation. In addition to this, it offers in-built security solution to protect the data from any illicit attack. Cloud solutions are often considered to be a vulnerable option for data storage which is a misconception.
Budget-friendly: Organisations are after profit-making and they aim at earning more by spending less. Before implementing the cloud solutions, the cost-benefit analysis is carried out by organisations. Many research works have proved that the cloud services are cost-effective and can help the organisation in both short- and long-term financial goals. The overall cost of cloud solutions is comparatively low than the traditional computing solutions. Botta, et.al., (2016) highlighted that cloud users need not pay for any device or hardware. They are accessed through online platforms.
Lesser setup requirement: It is observed that traditional computing services require a technical expertise and is not a cakewalk for everyone. On the other hand, the cloud services are so easy-to-access and they require lesser setup requirement. One can access information without needing the ownership of the technology or IT infrastructure. One can easily do that by having a computer system with Internet access (Sun, et.al, 2013).
Data Security Issues: Since the focus of this report is the cloud services in the banking sector, the data security issues may cause the humongous loss to the bank. If any information is leaked from the bank, then it would not only bring the huge economic loss but also cost the reputation of the bank. Since the data is stored via the Internet, it makes the information vulnerable to be attacked by the hackers and data thefts (Ali, et.al, 2015). Due to this reason, the acceptability of the cloud solution is not 100% in every sector. Organisations and customers are reluctant to use cloud solutions. To eradicate this issue, the banks are regularly updating their security devices and software in order to safeguard their data from getting stolen.
Dependency & Control Issues:Shaikh &Haider, (2012) argues that cloud services are dependent on a large number of factors. If in any case, the access to the cloud services are lost or any discrepancy takes place, then it would be beyond the organisation control. Control lies in the hand of the developers.
Technical Issues: Since cloud solutions are external storage resources, there are high chances of occurrence of certain technical glitches. If they occur in any case, then they are not in the control of organisations to resolve them. This may be time-consuming for the organisation and may result in poor customer experience (Hashizume, et.al, 2013).
Require high-speed internet: As it is highlighted that cloud services are dependent on Internet access. However, not every bandwidth is suitable for using cloud services. It is observed that only high-speed internet is suitable to access the information. In order to obtain a desired amount of performance, organisations are required to carry out some transformation in the internet bandwidth.
In this report, the concept of cloud computing was elaborated thoroughly, wherein it was told that this is the most advanced and emerging tech-solution in the business world. This report studied the consequences and impressions of cloud computing. For the study purpose, it considered the case of “Commonwealth Bank of Australia” which is the multinational bank operating in many countries of the world, such as the UK, US, etc. The following report provided a thorough understanding of the problem statement, literature review to evident it, and lastly, it discussed the outcomes and proposal in an elaborated manner.
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