Amazon Aims To Provide Cloud Service To Big Banks
Amazon intends to offer its Amazon Web Services to huge US Banks.
Amazon is offering its cloud computation service to huge United States banks, expecting to enter a last major foothold of old-line tech companies. Amazon Web Services has been contacting banking organizations lately, such as JP Morgan Chase & Co, Goldman Sachs Group and Citigroup. It acknowledges them about their capability to save money by providing its services on rent for performing high-demand jobs instead of developing their own infrastructure.
Getting business from large organizations for regulatory compliance and security is not easy for an organization that established its name selling computer facilities to small companies and user-focused companies like Netflix.
In 2013, CIA chose Amazon for running cloud facilities for intelligence agencies. Now, the American e-commerce company is trying to prove its chops in the financial industry, a field that, for a long time, has been led by tech business giants such as Microsoft and IBM.
AWS maintains a huge group of servers that consumers access over the web — known as ‘cloud’. Clients are rented as much storage capacity or computation power as they require, with the capability to scale back with the decline in demand. Amazon argued with banking institutions that the facility is very good for tasks like supporting mobile-banking applications, crunching risks conditions and options in disaster.
The offer, in theory, could help banks to shift technological expenditure to new sectors and away from the maintenance of such a large number of datacenters. The problem is that the public cloud business of Amazon is open to everybody. Banks that have depended on their own private infrastructure up till now would feel the convenience with safety.
J.P Morgan found some uses of public cloud to cut down expenses and for scalability in the storage sector, said Matt Zames, chief operating officer of bank. For instance, banks might require additional computation power when use of credit cards surge on Black Friday more than any other part of the year. Mr. Matt told that banks start testing its public cloud with an initial pilot trial in 2015.
The biggest US bank in terms of assets thinks it could save a fortune if it moves towards the cloud. J.P Morgan has talked to Google apart from the online retailer, according to various sources. This is a green signal for AWS.
Before completely moving ahead, J.P Morgan has a list of “key controls” to deal with, including encryption, controls on access and compliance, and legal issues, Matt stated.