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Euro bank regulator: Don't follow the crowd. Stay off the cloud

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Earl Rizvi
Jul 04, 2018 08:20
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Outsourcing to fluffy white stuff carries 'reputation' risks – report

An EU financial regulator has warned that banks moving to the cloud are at risk of vendor lock-in as well as transferring IT jobs to "subcontractors from high-risk areas".

The EU Banking Authority, which regulates the financial regulators of member states, has issued a report looking at the risks of "fintech", the fashionable name for "IT that makes financial institutions work".

Among the inevitable prognostications on blockchain and the like, the report focused on public, hybrid and private cloud, warning that low upfront costs could potentially mask deeper problems – doing so in simple language, presumably targeted at senior executives and PFYs.

On the other hand, private clouds are typically less scalable and more expensive than public clouds," said the report.

It continued, focusing on hybrid cloud business models: "The role of IT staff in institutions could possibly undergo a significant transformation in this case, with increased cloud outsourcing services, and could possibly convert into support and consultation for cloud service selection, engagement and management."

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Earl Rizvi
Jul 04, 2018 08:20
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