Pub. 2 2011 Issue 4

www.wvbankers.org 20 While commonly referred to as “the cloud,” there are actu- ally several types of cloud environments. We typically focus on two of them: public and private. It can be difficult, even impossible, to pinpoint where data resides in a public cloud, so banks customarily want to leverage a private cloud for se- curity reasons. Private clouds can isolate a bank’s data and applications, which means they offer better transparency and more control over how data is secured and managed. However, even while private cloud environments are con- sidered secure, many examiners believe it is best practice for an institution’s data to be encrypted as well. Data of any kind (attached to an email, filed on an in-house server or stored on a local computer) is always at risk, so encryption is essential, in the cloud or not. Encryption ensures that sensitive data stored in the cloud is truly secured. A considerable topic of conversation surrounding the adop- tion of cloud services, though, is often the perceived loss of control. Many banks see moving to a cloud-based environ- ment as relinquishing power over their systems and data. While transitioning to the cloud does require a new way of thinking, many cloud providers have resources that deliver greater transparency and management than banks could previously afford. Banks gain control through enhanced de- livery and detailed application performance insight, which increases control instead diminishing it. When talking about the cloud, there’s a lot to discuss. Cloud computing delivers a number of benefits but comes with some significant considerations as well. If the cloud is on your bank’s horizon, do your homework. Look for providers who offer superior controls, redundancies and third-party assessments and audits. Cloud computing is no differ- ent than any other technology, so examine how providers manage access for IT staff, protect your data and maintain security as a whole. It can be a cloudy conversation at first, but understanding the cloud can help banks achieve cost reductions, faster project deployment, simplified maintenance and better resiliency. n Like the strength of the Appalachian Mountains... West Virginia Community Banks deserve a strong Correspondent Bank working for them. The Bankers’ Bank has a solid tradition of personal service matched with superior products. “I look forward to earning your business and becoming your Correspondent Banker.” – Scott Jones, Vice President The Bankers’ Bank of Kentucky Your Correspondent Bank 800.248.3229 | 502.695.3000 | www.bbky.com Scott Jones - Vice President Cell: 502.609.2559 5504_W.VirginiaAd_final.indd 1 11/2/09 1:02:40 PM Jeff Simpler is a leading expert on financial industry technology issues and is senior director of business development for HEIT, a CSI company. He can be reached at jeff.simpler@goheit.com.