Financial services companies are reluctant to use cloud-based services because security and privacy are imperative in this strictly regulated sector. At a minimum, these companies see industry auditors every 18 months. When privacy and security measures are breached, the consequences can be devastating for customers, shareholders, company officials, and employees.
A study by the Cloud Security Alliance confirms this. Sixty-one percent of financial services industry survey respondents said a cloud computing strategy was only formative in their organizations; 39-41 percent said their IT strategy would be a hybrid mix of cloud and in-house computing, and 18 percent said their cloud strategy would largely be confined to using private clouds.