Security and Confidentiality
It seems quite a number of vendors are now offering cloud-hosted services. There is now a bit of a cloud-based systems boom as it were, but in our opinion, most companies do not fully comprehend the risk that this approach entails. There surely are security and confidentiality issues to be concerned with when you go cloud.
Many companies have realized this and they are now opting for on-premise installation of their systems with an option to have the server hosted. Also, encrypted databases are now a very sensible option, so all in all this is something that we at ComFin have been doing from the word goes.
So, what risks are you exactly referring to? Well, while the cloud tends to be cost-effective, convenient and relatively easy to deploy, many people overlook the real dangers of it, especially when it comes to Commodity Trading or any type of large-scale trading for that matter.
Security and Privacy in the Cloud
Basically, you are giving away extremely confidential information and data and you totally depend on a cloud service provider to properly manage everything for you. So in other words, when a company embraces the Cloud they might no longer have full control over its data and this is a very sensitive issue that cannot be taken lightly.
There’s also what we call the “vendor lock-in” since it is very difficult to migrate from a provider once you have been using their Cloud-based system. If a user wants to switch some other provider it can be very painful and cumbersome to transfer these huge amounts of data from the old provider to the new one. This is another reason why one should carefully contemplate all options when picking a vendor.
The customers who wish to connect all branches all over the world use tools like Citrix or Terminal Service and therefore the data always remains under the customer’s control. But the clients will still need their own I.T infrastructure and their own I.T department. Can I imagine this being a turn-off particularly for smaller customers? Well, that’s right but then that’s why we are now also offering hosted solutions.
The database and the application would not be installed at the client’s office but a professional data center instead and the hardware well it can be either rented or bought by the customer who has full control over the system and the data on it. All the maintenance work, backups et cetera et cetera are taken care of by the data center of course.
Now, don’t get me wrong, I mean all in all we still think that the cloud is the way forward, especially for the SMB market but as of today it still poses certain challenges that need to be taken care of. So, quite simply there are other ways of doing it.