At the Core
4 June 15

Money Matters: Why The Financial Sector Is In Serious Need Of Cloud-Based DR

Every company, for one reason or another, has to be very careful when it comes to safeguarding its customers' data. No one wants to explain to a distraught client base why their information was lost due to a server being damaged in an earthquake or thunderstorm, no matter what industry they work in.

"Simply moving key files from a main computer to a backup machine might not be enough."

This is perhaps especially true in the financial sector, where data is vital and stakes are high. Banks, insurance companies and other money mavens are in control of a staggering amount of very important, confidential information about their customers. Lose that info, and they risk not only sabotaging their current business, but also damaging their reputations for many years to come.

It's clear for this reason that some help with disaster recovery planning is necessary. Simply moving key files from a main computer to a backup machine might not be enough – what if a big storm hits and both devices are out of commission?

The better solution for this problem is for companies in the financial sector to make the move toward cloud data backup. This way, their data can stay secure and their customers will remain happy.

The transition to the cloud
IT leaders in just about every sector of the business world have been making the move to the cloud in recent years, though in finance, there's been a little bit of reluctance, according to CMO.com. The news source recently published the results of a global survey of financial institutions undertaken by the Financial Services Working Group (FSWG).

FSWG polled a group of companies including banks, credit unions, insurance companies, investment brokerages and more. They found that cloud computing is gradually becoming more prevalent, but that most organizations still don't have a comprehensive cloud migration strategy in place.

"Infrastructure flexibility, reduced total cost of ownership and shortened time to market are just some of the top reasons to move to the cloud," the FSWG report argued. "As better tools for auditing and data protection become more mainstream, companies will feel more comfortable moving critical data to the cloud."

That may be true. After all, their future IT health depends on this move.

The need for disaster recovery
There's no industry that needs DR help quite like finance does. Think about it – what if one huge storm comes along and wipes out an entire bank's database of customer financial data? The risk is staggering.

Your money will be safer in the cloud.Your money will be safer in the cloud.

According to TechTarget, the best way to take care of DR needs is with an affordable cloud-based solution. George Crump, president of IT analysis firm Storage Switzerland, told the news source it's clear that the cloud is a more viable choice than companies handling backup themselves at secondary data locations.

"In the battle over disaster recovery costs, the cloud clearly has an advantage if there is no secondary site that's DR-capable," Crump stated. "Typically, the costs to equip and maintain a second site overshadow even the ongoing costs of a cloud alternative."

By relying on a cloud-based approach to Infrastructure-as-a-Service, today's financial institutions can save their data while also saving a pretty penny.

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