INFORMATION TECHNOLOGY FOR

MANAGEMENT
Assignment
on
Cloud Based Banking Software Solutions

SUBMITTED TO
Prof. Mohammed Minhaj

GROUP-6

BELLIAPPA B D -17056

LAL KRISHNESH N S -17066

PRANETH RAI -17076

SHREYA L -17086

VIVEK ARADHYA S U -17096

Contents
INTRODUCTION .......................................................................................................................... 2
CLOUD COMPUTING .............................................................................................................. 2
CHARACTERISTICS OF CLOUD COMPUTING .............................................................. 2
SERVICE MODELS ...................................................................................................................... 4
IMPLEMENTATION OF CLOUD COMPUTING TECHNOLOGY ........................................... 4
Infrastructure as a Service(IaaS): ................................................................................................ 5
Software as a service(SaaS): ....................................................................................................... 5
Platform as a service(PaaS): ....................................................................................................... 6
Business Process as a service(BPaaS): ....................................................................................... 6
Deployment Variants of Cloud ....................................................................................................... 7
BENEFITS OF CLOUD COMPUTING IN VARIOUS BANKING IT SERVICE AREAS: ....... 9
CONCLUSION ............................................................................................................................. 10
BIBLIOGRAPHY ......................................................................................................................... 11
INTRODUCTION

CLOUD COMPUTING

Cloud computing is a supplement, consumption and delivery model for IT services based on
internet, which helps in accessing shared pool of configurable resources such as computer
networks, storage, servers, applications and services which can be done with minimal management
effort, often over the internet. Cloud computing can be defined as ability to use applications on the
Internet that store and protect data while providing a service — anything including email, sales
force automation and tax preparation.

Cloud computing allows the users and enterprises with various computer capabilities to store and
access data either in privately owned cloud or third party server located in a data center thus
making data accessing process easier, more systematic, structured and authentic.

CHARACTERISTICS OF CLOUD COMPUTING

 By implementing cloud technology agility for organizations can be improved, may

improve user’s flexibility with adding, or expanding technological infrastructure resources.
 Cloud computing is cost effective. A public-cloud delivery model converts capital
expenditures (e.g. Buying servers)to operational expenditure. Here the third party provides
infrastructures. This purportedly lowers barriers to entry, as infrastructure is typically
provided by a third party and need not be purchased for one-time or infrequent intensive
computing tasks. Pricing on a utility computing basis is "fine-grained", with usage-based
billing options. As well, less in-house IT skills are required for implementation of projects
that use cloud computing.
 Cloud computing enables users to access systems using a web browser regardless of their
location or what devices they are using. (e.g., PC, mobile phone). As infrastructure is off-
site (typically provided by a third party) and accessed via the Internet, users can connect to
it from anywhere.
 Cloud computing applications do not need to be installed on user’s computer or any other
devices; hence maintaining the applications is hassle free and can be accessed from
different places (e.g., different work locations, while travelling, etc.).
 Cloud computing enables the user to share the resources and costs across a large pool of
users in the organization thus allowing for:
 Centralization of infrastructure in locations with lower costs (such as real estate, electricity,
etc.)
 Peak-load capacity increases (users need not engineer and pay for the resources and
equipment to meet their highest possible load-levels)
 Utilization and efficiency improvements for systems that are often only 10–20% utilized.
 IT experts from the service provider monitors the performance and consistent and loosely
coupled architectures are constructed using web services as the system interface.
 Resource pooling is the provider’s computing resources are commingle to serve multiple
consumers using a multi-tenant model with different physical and virtual resources
dynamically assigned and reassigned according to user demand. There is a sense of location
independence in that the consumer generally have no control or knowledge over the exact
location of the provided resource.
 Productivity may be increased when multiple users can work on the same data
simultaneously, rather than waiting for it to be saved and emailed. Time may be saved, as
information does not need to be re-entered when fields are matched, nor do users need to
install application software upgrades to their computer.
 Reliability improves with the use of multiple redundant sites, which makes well-designed
cloud computing suitable for business continuity and disaster recovery.
 Security can improve due to centralization of data, increased security-focused resources,
etc., but concerns can persist about loss of control over certain sensitive data, and the lack
of security for stored kernels. However, the complexity of security is greatly increased
when data is distributed over a wider area or over a greater number of devices, as well as
in multi-tenant systems shared by unrelated users. In addition, user access to security audit
logs may be difficult or impossible. Private cloud installations are in part motivated by
users' desire to retain control over the infrastructure and avoid losing control of information
security.
SERVICE MODELS
Cloud-computing providers offer their services according to different models, of which the three
standard models per NIST (National Institute of Standards and Technology) are Infrastructure as
a Service (IaaS), Platform as a Service (PaaS), Software as a Service (SaaS) and Business
Processes as a Service(BPaas).

IMPLEMENTATION OF CLOUD COMPUTING TECHNOLOGY

All financial transactions like deposit, withdraw, etc. in bank branches operate under one central
bank. There will be a central cloud server with all hardware and software resources from where
each end user can communicate using an API and perform all banking operations. This needs low
capital investment and the price varies on the usage rate of the user.

Cloud computing services are available at various levels

1. Infrastructure as a Service(IaaS)
2. Software as a service(SaaS)
3. Platform as a service(PaaS)
4. Business Process as a service(BPaaS)
Infrastructure as a Service(IaaS):

Iaas is a type of cloud computing service which provides all the required computing resources over
the internet virtually. It consists of a third-party provider who hosts all required hardware,
software, servers, storage and all other components including maintenance and backup.

It can be bought on pay per-use basis for an hour, week or a month. This eliminates the capital of
deploying required hardware and software

Some of the leading Iaas providers are-

 Amazon Web Services

 Windows Azure
 RAckspace Open Cloud
 IBM SmartCloud Enterprise
 Google Compute Engine

Software as a service(SaaS):

Saas is a type of cloud computing service which is a software licensing and delivery model which
is provided on a subscription basis hosted centrally on a server. It can be accessed by end users via
a client using web browser over internet. Basically a software or an app is rented out on pay-as-
you-go basis over internet which is hosted on a server virtually.

Some of the leading Saas providers are-

 Oracle
 SAP
 Cobweb
 MuleSoft
 Salesforce
Platform as a service(PaaS):

Platform as a Service(PaaS) is a type of cloud computing service which provides a platform to

build applications and services over the internet. All the necessary services are hosted in the cloud
and can be utilized by the end user via their web browser. As this is a virtual infrastructure it has
both cost and practical benefits. Features can be changed when required.

Some of the leading Paas providers are-

 Amazon Web Services

 Salesforce
 LongJump
 Microsoft
 IBM
 RedHat

Business Process as a service(BPaaS):

Business Process as a service(BPaaS) is a type of Business Process outsourcing(BPO) that employs

clod computing models such as Saas,Paas,IaaS,etc to automate the process. This reduces the labor
count thereby cutting costs.
Deployment Variants of Cloud
There are different deployment variants of cloud

1. Public clouds
2. Private clouds
3. Hybrid clouds

1. Public clouds
Public clouds extend the data centre’s capabilities by enabling the provisioning of IT services from
third-party providers over a network. The data and processing may be located anywhere in the
world on infrastructure that is shared with the cloud provider’s other customers, or “tenants”.

2. Private clouds
Private clouds are built by applying virtualization within a bank’s own data centres. Because
private clouds are not exposed to external “tenants,” banks tend to regard them as a more secure
environment for customer data.

3. Hybrid clouds
Hybrid clouds blend public and private clouds depending on the sensitivity of the data and
applications in each process, and the degree of business criticality and differentiation. Most banks
will follow a “hybrid” cloud strategy which can also be a cloud owned by and located within the
bank, but operated by a third-party.
All service layers, regardless of deployment model (private, hybrid, and public), a banking
sector must implement a consistent model to govern, provision, and operate activities across all
layers. This encompasses provisioning not just the infrastructure, but all components and services
required to deploy the bank service, for example, hardware, network services, operating system,
database, middleware, application, and third-party service provisioning.

Infrastructure Services—Includes servers, storage, and networking, both inside and outside a
banking services for data centre. Many banks are currently building an internal cloud IT
infrastructure. This layer is often called IaaS.

Platforms Service—A broad technology array, including application hosting environments and
tools, middleware technology, development frameworks and tools, and standards applied to
specific business services. Even a core banking product includes a development environment such
as frameworks, scripts, languages, tools and deployment environment such as deployment scripts,
monitoring, and control environment.

Business Services—Core bank services such as corporate and retail banking, wealth management,
treasury management, risk management and compliance, trading.
Banks have built these services in-house; the market is replacing these systems with commercial
off-the-shelf packages that embrace an SOA. Some business services, such as loan origination and
payments, are consumed through an external service provider.

Channel Services—Support diverse channels such as ATM, branch, call centre, mail, mobile,
online, telephone, video, etc. The services are tailored per channel, built on a channel-specific
technology stack with some sharing across channels via bridging technology. As the number of
channels, devices, and users explode, banks evolve toward single architecture that supports all
channels, delivering a consistent customer experience, services, and information across all
channels.

Security (Authentication, Authorization and Access Control) —the critical need for security,
privacy, and control in a cloud environment. For applications that need lower levels of security
and control, a public cloud may suffice. Where more stringent levels of security and control are
called for, a private cloud is the logical choice. For more sensitive banking sector services
applications, which call for higher levels of privacy and control, retain them on their existing
environment, or consider a utility services solution, or traditional managed hosting services
approach.

Scalability—The Cloud service that provide real-time visibility into resource utilization, operation
performance, patterns for CPU utilization, disk I/O, and network traffic.
Enabling employees across distributed branches to access trading and banking systems through a
security-rich cloud infrastructure.

BENEFITS OF CLOUD COMPUTING IN VARIOUS BANKING IT

SERVICE AREAS:

Analytics: Integrating customer data across banking platforms to enable near real-time insights.

Collaboration: Enabling employees across distributed branches to access trading and banking
systems through a security-rich cloud infrastructure

Cost Savings and Usage-based Billing: With cloud computing, financial institutions can turn a
large up-front capital expenditure into a smaller, ongoing operational cost. There is no need for
heavy investments in new hardware and software. In addition, the unique nature of cloud
computing allows financial institutions to pick and choose the services required on a pay-as-you-
go basis.

Desktops and devices: Deploying a private cloud to centralize management of desktops allows
for greater remote flexibility without sacrificing control, while enabling banking employees to
access the applications and data they need

Development and testing: Enabling a bank’s development teams to quickly and easily create
virtual environments thus increasing the agility of development and testing
Industry applications: Enabling payment providers to standardize and modernize transaction
processing

Infrastructure compute: Allowing capacity to be allocated, expanded and reallocated efficiently

gives banks flexibility and agility while resolving the issues of complexity and cost increases
related to scaling up traditional network models to accommodate future growth

Infrastructure storage: Providing scalable storage solutions to ensure that the real-time demands
of today's trading and analytics processes are maintainable

Managed backup: Backing up a bank’s critical business data to ensure that in the event of a
disaster a bank can bounce back rapidly and easily

Security: Enforcing active security and endpoint management to ensure corporate governance and
banking IT policies are maintained.

CONCLUSION
While banks will benefit in a similar way to other cloud users from this particular offering,
especially in terms of lower total cost of ownership, enhance their operations and help them
develop new offerings with flexibility and a rapid time to market.
Cloud computing may soon prove indispensable as an answer to the daunting new demands for
agility, transparency, and efficiency. Shrinking markets and global competition pose numerous
challenges for banks – the Cloud offers the speed, flexibility and real-time information needed to
meet those challenges on a cost-effective basis.
Global economic situation to more stringent regulatory controls, nimble new competitors, and
shifting Customer expectations—bankers and others now face a dramatically different market
reality. Banks must collaborate and technology must be part of that collaboration. The benefits can
include not only lower costs, but increased revenue and optimized customer relationships. Cloud
computing represents game-changing shifts in how banking services organizations acquire and
leverage IT resources. Cloud computing also provides a high level of redundancy and back-up at
demands.

BIBLIOGRAPHY
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Service-IaaS
Wikipedia. (n.d.). Retrieved from https://en.wikipedia.org/wiki/Cloud_computing