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Essay: Cloud Computing in Banking: Advantages & Concerns | Benefits & Challenges

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A SURVEY ON CLOUD COMPUTING FROM BANKING SYSTEM PERSPECTIVE

Samridhi Gupta

2 Yr-B.Tech (CSE),

Galgotias University,India

samridhi1194@gmail.com

Satwik Sabharwal

2 Yr-B.Tech (CSE),

Galgotias University,India

satwiksabharwal01@gmail.com

Thirunavukkarasu K

Assistant Professor, SCSE, Galgotias University,India

thiruk.me@gmail.com

Dr. Ajay S. Singh

Professor, SCSE

Galgotias University,India

Email:drajay.cse@gmail.com

Thiru. K

Abstract—Cloud Computing is emerging amongst all the ascending technologies as the most prodigious process in the chronicles of computing. As it still takes time to settle, a new challenge as felt whilst its implementation across has been a relatively more gratuitously new. Today as Cloud technology is increasingly expanding across the globe for its resulting benefits but still needs time to offer its full development. This technology provides a new way to trace banks information system. This paper in brief presents the characteristics and applications of the cloud computing. It also explores the innovative applications of cloud computing and elaborates the defects of the framework in banks.

Keywords—cloud computing; banking sector; services; technology

I. INTRODUCTION

Cloud computing is a way of delivering IT enabled capabilities as reliable service-on-demand with elasticity and scalability, where users can make use of infrastructure, resources, platform, or software without manual intervention and manage the fundamental complexity of the technology.

Cloud computing technology refers to the capability of provisioning three fundamental services namely Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS) that allows deployment on top of various deployment models like Public, Private and Hybrid cloud models.

II. CLOUD COMPUTING TYPES

A. Cloud Service Models

Infrastructure as a Service (IaaS): It refers to the capability of provision of raw computer infrastructure, such as servers, network and storage, by a provider to a consumer. Consumers are not required to manage the infrastructure as they do not have the ownership of the underlying Cloud infrastructure. The functions required to provide the infrastructure are abstracted.

Platform as a Service (PaaS): It refers to the provision of the capability in which development platforms and middleware systems are hosted by a vendor and are offered to developers, allowing developers to code and deploy their application without directly interacting with the underlying hardware[1].

Software as a Service (SaaS): It refers to the capability provided to the consumer to run and use applications on a cloudinfrastructure of the provider. The capability can be accessed by consumers from various client devices. Buyers are freed from the possession and maintenance issues of software and hardware [2].

B. Cloud Deployment Types

Private Cloud: Private Cloud are proprietary networks, residing within the organization for the exclusive use of the organization. Private Cloud is multitenant and shared environments built on virtualized infrastructures, automated and highly efficient. In case of a private Cloud environment, the organization is in charge of setting up and maintaining the Cloud resources and, also the organization can take better control of security and regulatory compliance issues. The added benefits are in terms of better control of security of sensitive data, more effective regulatory compliance and improved quality of services [3].

Public Cloud: Public Cloud is a Cloud service provided by third parties but hosted and managed by the service providers. The Cloud providers take on the responsibility of provisioning, installation, management and maintenance. The consumer can access and use the services and physical resources. Consumers are charged only for the resources and services they use.

Hybrid Cloud:Hybrid Cloud is the combinations of private and public Clouds. It combines on-demand external capabilities with on premises resources and in-house compliance. In this case, the management responsibilities are often split between the organization and the public Cloud providers, which can often become an issue of concern.

Community Cloud: Community Cloud is a semi-private Cloud that is used by a defined group of tenants with similar goals, backgrounds and requirements [4].

III. USING CLOUD APPLICATION IN BANKING SECTOR

Cloud computing Technology has been a major focus of banking sectors around the world. Cloud computing is an IT-enabled technology built on the idea of developing virtualization technology’s shared resource pooling, multi tenancy, scalability and elasticity. To provide new IT services rapidly and get them to market faster [5].

A. Advantages of using Cloud Computing Technology

Banking organizations are increasingly looking to adopt cloud technology, which offers the following advantages:

Organizations using cloud technology could have considerable decrease in their total cost of ownership. Beyond cost savings, the cloud technology would provide banks with opportunities to build consumer centric and active business models to grow more efficiently.

Organizations could consolidate several applications and servers into minimal physical hardware, hence reducing costs for infrastructure maintenance, IT personnel, real estate.

B. Issues/Concerns related to Cloud Computing Technology

• Regulatory Compliance: Users are totally responsible for the security and integrity of their own information, even when the information is conserved by a service provider. Traditional service providers provide external audits and security certifications [6].

• Privileged User Access: Cloud computing allows the processing of the sensitive data of user by personnel outside the organization, so that non-employees could possibly have full access to the confidential information. Consumer should ask providers to supply oversight of privileged administrators, and the controls over their access.

• Location of Data: When a consumer uses the Cloud, consumer probably would not know exactly where his data is hosted. It is required to ask providers to make a contractual commitment to obey local privacy requirements on behalf of the consumers.

• Data Segregation: Data in the Cloud Storage is typically in a shared environment alongside data from other customers. Encryption procedures avail for sensitive information but are not always effective. Encryption procedures crash can destroy the data totally[7].

• Recovery: Even if the consumer does not know where his information is stored, a Cloud provider must tell to his consumer what might happen to information and services in case of a disaster.

C. Cloud Computing for Banks

Banking system has to adhere to a lot of regulatory and confidential information in which consumer account data is of highest importance. So banks need to be very cautious before moving their steps on to the cloud computing.

Studies now indicate that about 75% of banking systems will use hybrid solutions for cloud computing or the Enterprise Cloud Computing Technology [8].

This technology provides a broad range of support that helps banks to inherit cloud services on a flexible approach. Most of the banks seek to rely on Private Cloud as it is the safest cloud service where sensitive data is not exposed to the external tenants.The cloud resources can be rented on cloud consumer demand basis instead of being purchased, it also helps in reducing CAPEX (Capital Expenditure) to OPEX (Operational Expenditure)and reducing total cost of ownership. Other than these benefits, private cloud comes with the advantages of low price, complete protection to the applications security and enables transition in various banking technologies; hence banks should conservatively plan the development of new applications that can prolong for a long-term guarantee for the consumers [9][11][13][14].

Fig. 1. Core Banking Software as service

In the framework of a public cloud, IT resources are provided by an external provider via the applications that are all located on the same infrastructure but with separate individual allocation. In this instance several consumers therefore share the cloud infrastructure. Whereas, hybrid cloud deployment intend to combine the advantages of public cloud and private cloud for their respective intended environments.

IV. PROPOSAL FOR CLOUD TECHNOLOGY IN BANKING SYSTEM

As the bank businesses grow rapidly, the amount of information and data in bank grow in multiplicative nonrepresentational times. This demand high data storage capacity and reliability. Presently, most commercial grade banks majorly adopt two types of storage applications namely NAS (Network Attached Storage) and SNA (Storage Area Network). NAS always uses the same network as applications use, which can easily cause final congestion and on the other hand, SNA uses physicalinfrastructure that are too expensive for banks to spend[10].

These two applications are stated in cloud computing technology. NAS application is a kind of distributed file system and uses the networks, just like Google File System (GFS) while SNA application separates storage devices from networks, and uses enterprise itself. The one-time directs at private cloud, and the second directs at public cloud. These two applications are both adopted in building clustered systems. Cloud storage structure consists of five subsystems, covering Client Agent (CA), Cloud Management System (CMS), Object Storage Node (OSN), Integrated Storage Management (ISM) and Metadata Server (MDS). Client Agent are sort ofportal websites communicating clouds, that allows to read, write and alterthe files. CMS is a bridge between OSN/MDS and ISM, and is responsible of collecting resources for  entire system and monitoring devices. Object Storage Node stores and manages the clients data, realizing data recovery and data migration. Integrated Storage Management. Metadata Server function all the meta data for the cloud storage system, including object strip and various layout. Integrated Storage Management operates, manages and monitor the entire system, which is known as a management of multiple subsystem for the storage system. The Cloud Storage construction is shown below in Figure.1.

Fig. 2. Construction of cloud storage

Information in bank systems is life. If Banks information once disclosed,it results not only large economic loss issues, but also banks potentiality can be seriously affected. The technology offers some benefits for the storage systems, such as virtualization, distributed model, high elasticity and reliability, easy to manage. The technology of cloud computing enables banks to improve the data storage efficiency, reduce the banks operational cost and ensure the security of data transmission[11].

Cloud Computing security and supervision for banking system-

There are various Cloud security guidelines and standards which explain the different aspects of security in the Cloud infrastructure [12]. Organizational security distinguishes legal issues, governance, compliance, risk and control, audit controls, roles and responsibilities that are necessary to the Cloud deployment. Also, Operational security distinguishes awareness, SLA and vendor management, identity and access control management, disaster recovery and business continuity concerns that are required after the Cloud deployment to insure the assets, and also to ensure security across theorganization infrastructure.

V. CONCLUSION AND FUTURE WORK

In this paper, we have discussed about differentchallengesbanks are facing with the traditional methods of banking system.Banking system adopting cloud technology can renovate their traditional approaches so that they can focus more on consumer centric values. Cloud computing is an emerging technologywhich delivers hosted services over Internet on demand basis.

A few challenges have encountered while executing applications on cloud like applications being incompatible on environment due to lack of OS support, sensitive information systems security or other technical issues.

Banks can choose any of the services depending on their applications requirements. The resultant of cloud computing technology in banking industry helps in various areas like cost reduction in maintaining infrastructure, the concern of building data centers for storage, network etc can be reduced thus reducing operational expenditures. Many of such issues can be resolved by adopting cloud technology. Apart from cost savings, cloud technology provides banks with consumer centric and active business models to grow more effectively.

References

[1] Boniface, M.; et al. (2010), “Platform-as-a-Service Architecture for Real-Time Quality of Service Management in Clouds”, 5th International Conference on Internet and Web Applications and Services (ICIW), Barcelona, Spain: IEEE, pp. 155–160.

[2] Liu, Hongji Yang, Xiaodong (2012). "9", Software reuse in the emerging cloud computing era, Hershey, PA: Information Science Reference. pp. 204–22.

[3] Bernstein, David;Ludvigson, Erik; Sankar, Krishna; Diamond, Steve; Morrow, Monique (2009-05-24). "Blueprint for the Intercloud – Protocols and Formats for Cloud Computing Interoperability", IEEE Computer Society: 328–336

[4] He, Sijin; L. Guo; Y. Guo; C. Wu; M. Ghanem; R. Han., "Elastic Application Container: A Lightweight Approach for Cloud Resource Provisioning", 2012 IEEE 26th International Conference on Advanced Information Networking and Applications (AINA): 15–22.

[5] Gayatri Sattiraju, Lalit Mohan S, Shakti Mishra, IDRBT Community Cloud for Indian Banks, 2013 International Conference on Advances in Computing, Communications and Informatics (ICACCI), pp. 1634 –1639.

[6] Singh, Jatinder; Powles, Julia; Pasquier, Thomas; Bacon, Jean (July 2015). "Data Flow Management and Compliance in Cloud Computing", IEEE Cloud Computing 2 (4): 24–32.

[7] Tharam Dillon, Chen Wu, Elizabeth Chang. Cloud computing: issues and   challenges   .2010   24th   IEEE   International   Conference   onAdvanced Information Networking and Applications.pp.6-8.

[8] Marston, Sean;Li, Zhi; Bandyopadhyay, Subhajyoti; Zhang, Juheng; Ghalsasi, Anand (2011-04-01), "Cloud computing — The business perspective", Decision Support Systems51 .

[9] ParagArora,  ”Banking  on  the  Cloud”,http://www.cisco.com/web/IN/about/network/banking_cloud.html.

[10] Francesco Maria Aymerichl, Gianni Fenul-2, Simone Surcis2.AnApproach to a Cloud Computing Network.

[11] Jingjing Jiang,A Research on Commercial Bank InformationSystems Based on Cloud Computing, 2011 IEEE

[12] Anupam Tiwari, “CLOUD FORENSICS: CHALLENGES ONLY AHEAD”, Cyber Times International Journal of Technology & Management, Vol. 8 Issue 1, October – March 2015.

[13] Kemal A. Delic, Jeff A. Riley , Enterprise Knowledge Clouds: Next Generation KM Systems?, International Conference on Information, Process, and Knowledge Management, 2009.

[14] "Towards Continuous Cloud Service Assurance for Critical Infrastructure IT". The 2nd International Conference on Future Internet of Things and Cloud (IEEE FiCloud-2014). Retrieved 2014-08-15.

[15] Albena Antonova, Roumen Nikolov, Conceptual KMS Architecture within Enterprise 2.0 and Cloud Computing, Computing, 2005.

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