I got this question recently and I thought of converting them into a “cloud 101” blog posts. So here they are:
Q: “Banking – with its high security needs and strict regulations – was always considered to be one of the last industries to accept cloud-computing”. So is cloud computing insecure?”
A: I would say – Cloud is secure. At least companies like Amazon (AWS), Microsoft, Google have advanced security mechanisms in place – In most cases, Cloud is more secure than private data-centers. And some banks do not move to Cloud (or cannot move to cloud) because of other reasons. And most of them fall on the legal side of things. Strict regulations (government regulations) as you mentioned.
And later at one point, we discussed about banks keeping parts of the data/app on-premise and moving other parts to cloud. That’s called hybrid cloud. What they do is that since they cannot move “sensitive” data to cloud because of government regulation and/or business policies – they move things that are permissible by law/business policies to cloud.
And we also discussed about what are the disadvantages of moving to cloud? I realized: Most of the perceived “disadvantages” are actually MYTHS. so at one point I felt the need to clear myths and then talk about other topics. It was fun though!
Cloud Security Alliance