cloud computing for financial services organisatios - benefits and barriers for adoption whitepaper

8/4/2019 Cloud Computing for Financial Services Organisatios - Benefits and Barriers for Adoption Whitepaper

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CLOUD SERVICES

Cloud Computing -

its and Barriers for

Financial Services

Organisations

www.cobwebcloud.com | 0845 223 9000 | [email protected]

Original Published Research from Cobweb Solutions - Europe’s Leading Cloud Services Provider

28032011 – v1.0

written by Ed Dixon

Head of Enterprise Services

$

Benef



Cloud Computing or Financial Services

What to look or in a Cloud Services provider

Key benefts o Cloud Computing

FSA and Cloud Computing

Services that Financial Services are adopting

Contemplating a Cloud solution?

Cloud adoption assessment process

Making adoption easy – the roadmapConclusion

About Ed Dixon - author

About Cobweb and The Cobweb Cloud

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CONTENTS



Cloud Computing for finanCial ServiCeS

The Financial Services industr y has experienced

unprecedented change in recent years.

Regulatory pressures, narrowing margins, and

fierce competition require organisations to

seek innovative strategies and solutions. To

prosper, Financial Ser vices organisations must

focus on core business and cost containment

without sacrificing the capability to adapt and

respond as the I nformation Technology market

evolves.

To meet the demands for greater agility,

efficiency and compliance Financial Services

organisations must embrace Cloud Computing

and harness I nformation Technology as a key

strategy to deliver Unified Communications as

a tool for employee empowerment.

Cloud Computing gives businesses the ability

to centrally manage data, rapidly create and

deploy new capabilities, whilst only ever

paying for the services used with instant

scalability. This makes the adoption of Cloud

Services a very compelling proposition for

‘ever-changing’ markets such as Financial

Services. Email Messaging, collaboration and

hosting are common entry points for Financial

Services organisations looking to transition to a

Software-as-a-Service (SaaS) model.

Initial requirements range from the need to

reduce and maintain hardware at predictable

costs, to wanting to improve service

performance and communication platforms

across the business. Once ROI can be proved

with these ‘mature’ hosted services, the use

of Cloud Computing for ‘Infrastructure-as-a-

Service’ (IaaS) for both customer facing ser vices

and internal systems simply becomes the

logical next phase.

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“The ‘ever-changing’ nature of Financial

Services makes the spreading of IT

costs, based on the volumes of sales, anattractive one … Every Financial Services

organisation we spoke to wants to keep

IT spending down to a minimum and

in proportion to their current trading

environment”

IT Director, Abacus Financial Options



Cloud Computing for finanCial ServiCeS

Many Financial Services organisations have

downsized IT departments over the last

couple of years in order to cut costs whilst

the economy remained unpredictable. In

addition, a lack of IT investment has resulted in

companies persevering with old unsupported

software, and missing opportunities to take

advantages of new technology which couldsupport their business.

In a recent survey of Financial Services decision

makers, 57% of respondents said they were

thinking of moving to software services via the

Cloud in the next two to three years, making it

possible to deploy the latest technology.

Cloud Computing can offer real benefits for

Financial Services organisations including:

1. CapEx free IT

2. Higher support levels and

guaranteed SLAs

3. Enhanced business continuity

4. Tighter security & compliance

5. Greater flexibility

6. Availability & mobility.

We needed something robust or legal and tax reasons. With Cobweb’s

Message Archiver solution, we have the conidence o knowing that all o our

email communications are automatically and securely archived”

Christopher Fullalove, Cayns’ Director o IT.

“Cobweb is more than just a solution provider; it is a trusted partner that

we know we can count on ... what’s more, Cobweb’s solution is robust and

reliable, and it does not cost the earth.”

Michael Walles, IT Manager, Bartercard

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What to look for in a Cloud ServiCeS provider

The adoption of Cloud Computing continues to

gain mainstream acceptance, largely because

behind the “Cloud hype” there are mature

service providers, with proven track records,

who have been providing what we now know

as “The Cloud” for many years.

Selecting a Cloud Services provider is often

just seen as another form of outsourcing;

however the key dif ference here, especially

when considering Software-as-a-Service, is

the granular level of day-to-day control th at

is retained by the organisation. In particular,

services that are deployed and managed

through portal based provisioning and

billing systems provide unrivalled levels of

transparency between the Cloud provider’s

Public Cloud and the organisation’s own Private

Cloud.

To meet the compliance, security and quality

requirements that are compatible with both

internal audits and FSA regulations, a Cloud

provider should at a minimum be able to offer

an ISO27001 and ISO9001 accredited service.

These industry recognised accreditations

demonstrate a serious, on-going commitment

to data security, and will of ten exceed those of

an internal deployment.

Moving to a SaaS offering can be a daunting

task, especially where a “big bang” approach to

migration (where everything is bought into

the Cloud at once) i s being considered.

Transitioning data from on-premise to the

Cloud does indeed represent one of the main

risks of transitioning from on-premise solutions

to the Cloud. In these situations a phased

approach is recommended giving time to put

a requisite programme of governance and

compliance in place, and ensure a smooth and

successful transition to the Cloud over a pre-

determined period of time.

For this transition period a level of co-existence

will exist between provider and organisation

– for example a phased transition of your

messaging solution to the Cloud would mean

at any point, some users would reside on

the old service and the rest on the new; yet

functionality such as address list and calendar

synchronisation would continue to function,

ensuring no noticeable drop in the quality of

the service.

Finally, it is recognised that business

requirements can change quickly, so it is

important to ensure that once your data &

services have been moved to a provider ’s

Cloud, if in the future your requirements

dictate you can move away effectively and at

an acceptable cost. Reputable providers will

understand this, and will even promote this as

a key benefit of their service.

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key benefitS of Cloud Computing for finanCial ServiCeS

•

Adherence to the latest Government regulationsand FSA compliance

• Utilisation o cutting-edge data protection

technologies

• Comprehensive back-up procedures and stringent

access control

• Fully managed inormation storage in a secure ISO

accredited Tier 4 Data acility

• Eliminate high capital expenditure and move to a

ixed per-user-per-month cost model

• Considerably reduce the risks associated with

upgrading existing legacy sotware

• 24/7 UK based Telephone and Online Customer

Support

• Enhance the user experience, mobility and move

towards uniied communications

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“Hosted Exchange is highly lexible. It increases our productivity and eiciency.

It is extremely cost-eective because it allows us to switch users on and o

instantly. Message Archiver is robust and accurate. It ensures that we are able to

keep – and manage – all email histories in one location”

Christopher Fullalove, Cayns’ Director o IT.



and because messaging and collaboration

applications have become essential tools in

the financial services industry. It is vital that

any documents or email messages that might

contain sensitive information or confidential

data are fully secure and tamperproof.

For example a Cloud Services provider must

demonstrate that they have the ability to find

patterns of text in an email message to protect

against data in messages that have payment

details being intercepted. In addition, Financial

Services organisations need to be able to find

electronic communications quickly and easily

for legal discovery and compliance. Archiving

technology instantly encrypts and archives a

copy of every internal and external email sent

or received across your organisation.

A Cloud based archiving and compliance

service solution should guarantee that your

email archive is secure and tamperproof and

replicated in dual data centres, so that nothing

can be deleted or altered.

In addition the solution should offer a 100%

no virus guarantee. By ensuring this you

can be sure that everything in your archive

is authentic and most importantly, legally

compliant.

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The FSA (Financial Services Authorit y) is an

independent, non-governmental body that

regulates the financial services industry in the

UK, including most financial services markets,

exchanges and firms. Granted statutory powers

in the UK by The Financial Services and Mark ets

Act 2000, the FSA sets standards to which such

organisations must comply and can take action

against them should they fail to meet required

standards.

The FSA lays down strict requirements to

protect consumers against malpractice, and has

wide investigatory and enforcement powers to

ensure those requirements are observed. The

FSA’s regulations require all Financial Ser vices

organisations to store all emails sent and

received between businesses and consumers

for a minimum period of up to six years, and

other case related emails indefinitely, so that if

required cases can be reviewed.

This legislation from the Financial Services

Authority makes it a mandatory condition

for Financial Services organisations to have

a reliable and secure email messaging and

archiving solutions in place.

Financial Services organisations must ensure

that their messaging and collaboration

software is set-up and configured securely,

the fSa and Cloud Computing



Cloud ServiCeS that finanCial ServiCeS are adopting

Microsot SharePoint Server -

SharePoint Server is a collaboration and

content management solution that allows

Financial Services organisations to use

one integrated platform to support portal,

information distribution and document

management needs. The collaboration

capabilities can be deployed across entire

organisation regardless of geographical

locations and can even be used by suppliers

and partners.

SharePoint provides a cost-effective foundation

for creating web based business applications

(these could be intranet, extranet, and

even internet applications) which are fully

customisable and scalable to your business

needs and compliant with your internal

information governance requirements.

Microsot Exchange Server -

For organisations today, email is t he mission-

critical communications tool that employees

must use to produce their best results.

This greater reliance on email has increased

the number of messages sent and received,

the amount and variety of work performed by

email, and even the speed of business i tself.

Exchange Server provides a rich messaging

platform to manage information exchange

in your organisation whilst helping meet FSA

compliance objectives.

Email Archiving & Compliance -

Message archiving technology seamlessly

integrates with email and instant messaging

systems to deliver instant online search,

retrieval and monitoring capabilities. Fully

compliant Message Archiver solutions secure

your business information and provides rapid

recovery and audit trail.

These services provide businesses with a

professionally-managed yet easy-to-use, email

archiving, continuity and security solution.

Microsot Dynamics CRM -

Dynamics CRM can help Financial Services

organisations stand out from the competition.

With the ability to build and maintain rich

customer relationship profiles, you can provide

personalised service that builds customer

loyalty and ultimately increases your revenue.

Users will also find that the familiar Microsoft

functionality and inter face empowers them to

work in an efficient and natural way.

Cloud Hosting –

Cloud hosting is the provision of highly secure,

scalable, pay-as-you-go infrastructure to

support Financial Services organisations online

and e-c ommerce platforms. This flexibility

protects online revenues and meets the cyclical

resource requirements of seasonal highs or

lows.8



Contemplating a Cloud Solution?

The growing trend of opting for Cloud Computing as a solution has seen IT decision maker’s

attention shift to servic e management, costs and fee structures and spending less time on lengthy

implementations and upgrades.

The questions you need to consider when contemplating a Cloud solution are as ollows:

“By outsourcing our communications to Cobweb, we no longer have to deal

with the daily headaches o running an email service. In act, we don’t have

to spend a small ortune on an IT consultant as Cobweb manages everything.

This includes automatically upgrading the sotware, running the virus scans

and providing back up services – all or a low monthly cost.”

Je Moores, Director, Trinity Financial

1. Is Cloud Computing suited to your

organisation?

2. What is the impact of moving to the

Cloud?

3. Can you achieve FSA compliance

within the Cloud?

4. Does the service offer self-

provisioning and billing models to

suit?

5. What measures should you take to

ensure highest levels of security?

6. Will it lower your operational costs?

7. Where is the best place to start?

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Cloud adoption aSSeSSment proCeSS

• Determine how to get started with Cloud adoption and Cloud offerings

• Assess requirement for messaging, collaboration, Unified Communications, CRM and Cloud

hosting and agree objectives

• Identify which areas of your business are suitable and how compliance and standards are to

be met

• Prioritise Cloud opportunities to develop an overarching Cloud adoption roadmap

• Considerations for public, private, community and hybrid models

• Establish a high level ‘benefits case’ for adoption.

making adoption eaSy – the roadmap

The numerous Cloud options, benefits and barr iers to adoption drive the need for a Cloud roadmap

that balances thoughtful business insight, solution expertise and rapid time to benefit. Financial

Services organisations must decide which of the new Cloud-based delivery solutions and models

should be considered.

In developing a plan with a Cloud provider such as Cobweb Cloud Services, Financial Ser vices

organisations can gain a head start in understanding the opportunity for their organisation and

accelerate the ‘time to benefit’ whilst making adoption easy.

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Define Scope

Cloud Opportunity

Review

Assessment &

Analysis

Benefits

Statement

Cloud

AdoptionRoadmap

Infrastructure

Review

Application

Review

Maturity

Map

Cloud Adoption

Reference

Model

Establish Business

& IT StrategicObjective



ConCluSion

Whilst Cloud Computing, Software-as-a-

Service and Infrastructure-as-a-Service provide

a compelling option for Financial Services

organisations, the benefits and the risks need

to be addressed. A Cloud Services provider

differs from traditional outsourcers and hosting

providers through the transparency and

flexibility they bring in per unit billing, self-

provisioning and service reporting.

The process of moving to a Cloud provider

must offer co-existence and roll back to enable

a seamless migration; the provider must

have maturity of service with an established

customer base and service por tfolio. The

opportunity for Financial Services organisations

is significant and any project being undertaken

should consider, even as an alternative, Cloud

Computing.

Finally, as Financial Services organisations

look to IT to drive t heir businesses forward,

the adoption of Cloud Computing represents

one of the few strategic initiatives that is

able to demonstrate; lower predictable costs,

alignment to business and seasonal cycles, and

a foundation for business growth.

About the Author - Ed Dixon

Ed Dixon is the Head of Enterprise Services at

Cobweb and is responsible for the growth of

Cobweb’s mid-enterprise business. He plays a

pivotal role in working with clients to develop

their strategic plans and building the financial

case for Cloud adoption.

Legal Notice This document is the Copyright © 2011 of Cobweb Solutions Limited

and is correct at the time of publication.

All content is provided for informational purposes only. Cobweb is not

liable for any errors or omissions in the content, or for any actions taken

in reliance thereon. All Trademarks are hereby acknowledged.

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about CobWeb and the CobWeb Cloud

Cobweb has been delivering software from the

Cloud since the late nineties and remains the

largest Cloud provider in Europe of Microsoft

collaboration software in Exchange 2010,

SharePoint, OCS, Email Archival and Dynamics

CRM.

This is combined with the provision of

scalable and secure infrastructure and data

management services from the Cobweb Cloud,

which support business critical applications in

a pay-as-you-go utility model.

All underpinned with our unique hybrid Cloud

layer for management, provisioning and

transparent billing and our comprehensive

professional services capability.

Cobweb’s Cloud Services have proven to help

customers reduce the cost and complexity of

delivering software and infrastructure and is

accelerating the adoption of a service based IT

model.

Cobweb has embarked on a series of industry

best practice certific ation programmes to

provide our customers with further reassurance

of our capabilities:

ISO9001 – Quality Management (Assessment

passed 1st time – Sept ’04 and annually since)

ISO27001 – Inormation Security

Management (Assessment passed 1st time –

Mar ’06 and annually since)

ISO14001 – Environmental Management

(Assessment passed 1st time – May ’08 and

annually since)

Cobweb is a Microsoft Gold Certified Partner

with 5 competencies demonstrating the

breadth and depth of our Microsoft expertise

and skills:

• Networking Infrastructure Solutions

• Information Worker Solutions

• Mobility Solutions

•

Hosting Solutions• Unified Communications Solutions

In addition, Cobweb has selected the best of

breed partners to support our services delivery,

HP, Cisco, EMC, VmWare, Parallels, MessageLabs,

BlackBerry and Global Relay to name a few.

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