More than 4 years ago I was asked if Public Cloud Core Banking is a Hype or a Short Term Reality?
If you had read the post, you would probably find the answer that it was probably Hype and not Short Term Reality.
This post Revisits the same issue.
The issue is a major issue for Large Banks. Those banks use IBM Mainframe for executing their Core Banking systems.
The Systems Availability, Scalability and Security was not as high as the Mainframe based Core Banking Systems, but it was probably good enough.
My very limited Study
Mckinsey: Core Banking Systems Strategy for Banks
Delloitte: Cloud based Core Banking: Is it Possible?
The question in the paragraph's title is a kind of evidence that Core Banking in the Public Cloud is not a viable option for the Short Term. The article is about Long Term Cloud migration benefits.
The article does not refer to Real Large Scale Core Banking Case Studies.
Why immediate Cloud Migration is not a viable option?
1. Banks are Risk Averse
2. Functionality Risks
3. Losing systems maintenance skills
4. Performance Risks
5. Security Risks
The course is a new course by PECB.
I learned that Cloud Security Management is not as simple as Security Management within an Enterprise boundaries.
The following highlights clarify the complexities:
1. The threats management is divided between at least two organizations: the Cloud Services Provider and The Cloud Service Customer.
2. Are the Customer's systems protected from other Customers access or dependencies?
It should be remembered that Cloud Services Customers share Infrastructure and in Multitenancy SaaS Services they also share Software and Database.
3. The contract should define the Security duties and responsibilities, however the Customer should be aware of the Cloud Provider's Security Policy, Procedures, Controls and Methods.
4. On going Communication, updates and Reporting between Cloud Provider and Cloud Customer should be executed properly.
5. Incident Analysis is more complex because some of the aspects and data are not accessible by the customer.
Psychologically, if an enterprise controls Security its managers tend to think that Security is better than Security controlled by a Cloud Provider.
6. Availability Risks
7. Regulatory Risks
Reasons for Long Term Core Banking in the Public Cloud
4. Will IBM Mainframe Survive in the Long term?