We use cookies, including third-party cookies from Google to serve personalized ads through AdSense, to operate this site and understand how it is used. By continuing to browse, you accept this use. See our Privacy Policy and Terms of Use for details, including how to opt out of personalized advertising.
Accept
SmartData CollectiveSmartData Collective
  • Analytics
    AnalyticsShow More
    chatgpt image jul 21, 2026, 04 34 30 pm
    4 Core Benefits of Predictive Maintenance after Vibration Analysis
    10 Min Read
    How Does Data Mining Boost Customer Satisfaction in Logistics? Harnessing Analytics for Results -- AI-generated illustration
    How Does Data Mining Boost Customer Satisfaction in Logistics? Harnessing Analytics for Results
    11 Min Read
    chatgpt image jul 13, 2026, 04 23 45 pm
    How Data Analytics Helps Companies Improve User Engagement
    19 Min Read
    chatgpt image jul 13, 2026, 03 59 46 pm
    How Data Analytics Improves Multi-Location Search Strategies
    10 Min Read
    cybersecurity efforts
    How Behavioral Analytics and AI Are Redefining Cybersecurity for Boca Raton Businesses
    14 Min Read
  • Big Data
  • BI
  • Exclusive
  • IT
  • Marketing
  • Software
Search
© 2008-25 SmartData Collective. All Rights Reserved.
Reading: Public Cloud Provides Most Data Security for Financial Services Firms
Share
Notification
Font ResizerAa
SmartData CollectiveSmartData Collective
Font ResizerAa
Search
  • About
  • Help
  • Privacy
Follow US
© 2008-23 SmartData Collective. All Rights Reserved.
SmartData Collective > Uncategorized > Public Cloud Provides Most Data Security for Financial Services Firms
Uncategorized

Public Cloud Provides Most Data Security for Financial Services Firms

amisra
amisra
5 Min Read
Public Cloud Provides Most Data Security for Financial Services Firms
Illustration generated with FLUX.2 [klein 4B] via Cloudflare Workers AI.
SHARE

Corporate IT continues to argue that public cloud security cannot be trusted. They believe, mistakenly, that they can keep data more secure than the public cloud.

“We live in a world where data center breaches are in the headlines almost monthly, much to the consternation of corporate IT — the same corporate IT that fears the public cloud due to fears around data security. The truth is that the public cloud is more secure than the typical data center, and IT would get better security if it got past its prejudice against the cloud,” says David Linthicum, in his recent article.

Look at the recent hackings of Ashley Madison, Hilton and plenty of others. I’m sure they all deployed IT security specialists and spent a lot in managing security. But it wasn’t enough.

Because IT manages its own data resources, it believes it’s doing a better job than other people might, says Linthicum — especially those people at those cloud services where security practices are opaque. But it’s simply not true. Cloud providers have better security mechanisms in place and are more paranoid — and attentive — to security risks throughout their entire stack.

More Read

Is Nepotism Undermining Your Business Technology Innovation?
Is Nepotism Undermining Your Business Technology Innovation?
Text Analytics Gurus Debunk 4 Big Data Myths
The Future of Work
SAP Buys Concur for $7.4B for Travel & Expense SaaS
Can Enterprise IT Borrow from Lean Startup Thinking?

What public clouds bring to the table are better security mechanisms and paranoia as a default, given how juicy they are as targets. The cloud providers are much better at systemic security services, such as looking out for attacks using pattern matching technology and even AI systems. This combination means they have very secure systems.

It should be no surprise that the hackers move on to easier pickings: enterprise data centers. The on-premises systems that IT manages is typically a mix of technologies from different eras. The aging infrastructure is often less secure — and less securable — than the modern technology used by cloud providers simply because the old, on-premises technology was designed for an earlier era of less-sophisticated threats. The mixture of different technologies in the typical on-premises data center also opens up more gaps for hackers to exploit.

The public cloud has the advantage of being less complex and not dependent on older technologies. At the core, it’s a more secure platform.

The Navatar View

Corporate IT doesn’t agree. Here is an example of what an IT security expert had to say:

“As a communications programmer, I tell you that most customers have not fully realized the risks inherent in the current implementations of multi-tenant cloud computing. Those can be cleaned up eventually, but they CAN NOT BE CLEANED UP COST EFFECTIVELY. The encryption required means non-trivial CPU usage. So, you’re faced with either doing whatever you’re doing insecurely, or doing it with dedicated hardware. The multi-tenant, elastic model is simply broken from a security and efficiency perspective.”

CPU power is cheap so the entire argument falls flat. Nevertheless, these kinds of arguments sometimes influence financial services organizations into keeping their data in-house, even though they are breached constantly (just look at how frequently your credit card gets compromised).

If big banks cannot safeguard their data, imagine what choice smaller financial institutions have. There is no way an organization with a few hundred people or less (with a small IT team) can build the level of data security that salesforce.com or amazon can.

We agree with Linthicum – “cloud providers have done a better job, both because they have to and because their newer technology makes out easier for them to do so. IT should be taking advantage of that cloud security focus, not ignoring it.”

Share This Article
Facebook Pinterest LinkedIn
Share

Follow us on Facebook

Latest News

Stellar Repair for MS SQL Review: Can It Repair SQL Databases? -- AI-generated illustration
Stellar Repair for MS SQL Review: Can It Repair SQL Databases?
Exclusive Software SQL
How Search Engine Indexing Lags Behind Large-Scale Website Domain Migrations -- AI-generated illustration
How Search Engine Indexing Lags Behind Large-Scale Website Domain Migrations
News
How Great Content Moves Through A Marketing Ecosystem -- AI-generated illustration
How Great Content Moves Through A Marketing Ecosystem
Exclusive Infographic Marketing
What Your Brand Misses That Data Reveals -- AI-generated illustration
What Your Brand Misses That Data Reveals
Big Data Exclusive Infographic

Stay Connected

1.2KFollowersLike
33.7KFollowersFollow
222FollowersPin

You Might also Like

SIA Recap: Set It & Forget It – Triggered Campaigns
Uncategorized

SIA Recap: Set It & Forget It – Triggered Campaigns

4 Min Read
Could Data Science Have Saved Greece?
Uncategorized

Could Data Science Have Saved Greece?

3 Min Read
The difference between Statistics and Machine Learning
Uncategorized

The difference between Statistics and Machine Learning

3 Min Read
Is this Doable ?
Uncategorized

Is this Doable ?

0 Min Read

SmartData Collective is one of the largest & trusted community covering technical content about Big Data, BI, Cloud, Analytics, Artificial Intelligence, IoT & more.

From Bolts to Bots: How AI Is Fortifying the Automotive Industry
From Bolts to Bots: How AI Is Fortifying the Automotive Industry
Artificial Intelligence
Chatbots and SEO: How Can Chatbots Improve Your SEO Ranking?
Artificial Intelligence Chatbots Exclusive

Quick Link

  • About
  • Contact
  • Privacy
Follow US
© 2008-26 SmartData Collective. All Rights Reserved.
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?