Cloud Computing In Banking Industry – Strategies for incorporation
Abstract
The use of cloud computing has triggered many issues in the banking industry because of the emerging trend in its incorporation. The incorporation of cloud computing normally involves three factors: adoption, implementation and security. It is notable that the users of the services are private financial institutions. This elaborates the fact that cloud computing has effect on the bigger banking institutions. The services provided by cloud computing are relevant for the banking institution even though it may be possessing negative effects on the operation of the latter. This triggers the need to study the computing cloud issues relating to the three (adoption, security and implementation) in order to determine ways of making the services appeal to the banking institution.
Introduction
How does the banking industry get to incorporate cloud computing in their operating system? This question normally arises before the incorporation of cloud computing into the banking services. Cloud computing is one of the innovations, in the banking industry that allows banks to offer services to their customers at a lower cost while still ensuring higher yield in production (DURKEE, 64). The adoption of cloud computing has brought the question of which strategy a bank needs to employ to ensure it is compatible with cloud computing (Shimba, 47). The banks should always identify the correct strategies which will help in achieving a successful cloud computing, otherwise the latter will not help in achieving the mission of the bank. The banks would also have to identify the implementation strategy and cost it would involve ensuring that the cost does not exceed the amount of capital owned. Another prior step to establishing cloud computing will involve the banks determining the security of cloud computing when introduced into the operations. These will help the bank in determining the amount of capital that it would have to involve for the incorporation of cloud computing in its operations (Shimba, 47).
Relation to previous research – Literature review
Strategies for adoption
Shimba asserts that the adoption requires an understanding of different dynamics and expertise in diverse domains (Shimba, 35). The bank would need to identify the services it would like to offer through the cloud computing and the subsequent necessities found in the service catalog. Another consideration would be on identifying application that is compatible with the advantages of cloud computing. The bank would then have to identify the appropriate road map in relation to integration of cloud computing. The road map constitutes virtualization of the cloud besides discussing the entire related infrastructure. After all these consideration, the bank would have to analyze the adoption of computing cloud services in terms of barriers and the drivers constituted by the services (DURKEE, 64). This acts as the important step in integrating the services since it enables the bank to plan for the fortunes it will be facing. Research have shown that the main driver of cloud computing is the need for flexible and scalable IT resources. The bank will need to have an effective IT department which acts in managing the services by cloud computing. The use of cloud computation highly depends on the expertise from IT field and the need for optimization of the organization’s resources. It is also essential that the bank determine the barriers related to adoption, which always relates to the presence of security. This arises because of the increasing security awareness programs and trainings (Cohen, 15). Another barrier is integration issue presented by the system; usually affecting the organization with no technical nature.
Implementation
Implementation of cloud computing involves several factors that a bank would have to put into consideration. The user must have the chance of using the resources whenever they demand them thereby promoting agility of the system. The implementation of the cloud computing also involves considering the cost whereby the user must pay for the resources depending on the usage. The services must be available in the internet besides receiving the services through multiple redundant sites (Ristov, 78).
Security
The security associated with cloud computing depends on the psychological reactions it imparts on the client and the way it addresses the potential security risks. Even though, cloud computing may seem to be important to the bank; there are security challenges that usually come with its incorporation. Some possible sources of insecurity include confidentiality, integrity, availability, privacy, and auditability (Cohen, 15). The bank would have to go exhibit loss of governance since the services by cloud computing always transfer control to the provider. This leads to the insecurity of clients data since the provider can easily have access to them. The cloud services also make the bank go through lock-in, due to lack of tools between applications and services thereby forcing the clients to depend on the service provider (Shimba, 35). Another security challenge is isolation failure due to the sharing of resources, which is a characteristic of the services. The services do not offer separate storage means for the client thereby posing threats of hoping attacks. Data interception, a characteristic of cloud computing, also makes it susceptible to replay attacks and spoofing (Shimba, 35). The banks should always consider this security issues and find ways of adapting to them without witnessing losses, before adopting the cloud computing services.
Proposed Methods
This research system will integrate and incorporate the concept of qualitative research methods with the aim of obtaining accurate and reliable results and findings in the context of the research questions. Qualitative research method will improve the integrity and reliability of the findings. This is because the sample of the population will be human beings thus the need to evaluate their critical views in relation to the concept of cloud computing. This research methodology is adequate and essential in the achievement of the goals and objectives of the research in that it incorporates opinions, beliefs, ethical considerations, contradictory behavior, and obstacles towards the realization of the targets. Qualitative research method involves the concept of scientific procedures thus the ability to obtain accurate and valid results in accordance with the proposed research questions (Roxaneh Charkhchi et al, p. 106).
In order to achieve the objectives and goals of the research project, the qualitative methodology will adopt and implement the concepts of research instruments in the form of interviews and questionnaires. Interviews will most be applicable in relation to online evaluation on the concept of cloud computing within the banking system. Administration of the questionnaires will form the bulk of the research methodology and design because of its ability to acquire valuable information from a large population. Interviews and questionnaires will serve the purpose of research because of the opportunity of improvisation in case of dealing with the respondents in the field (Levin p. 1854). There is also an increase in the improvement of effectiveness and efficiency, in data mining, through administration of questionnaires and execution of interviews. Administration of the questionnaires and execution of the research interviews will also contribute towards the minimization of the concept of the biasness or error in the collection and analysis of data. Administration of the questionnaires is also essential and effective because of the incorporation of random sampling for the collection of data. Effective and efficient integration of the random sampling and incorporation of relevant research instruments in the form of questionnaires and execution of interviews (Aksu p. 203).
The population of the study will be approximately 400 persons with vast information on the concept of cloud computing. The population sample will consist of banking personnel and financial advisors with elements of accurate information in relation to the research questions and hypotheses. The sampling will be done through random sampling to reduce elements of error or biasness in the collection and analysis of data. The structuring of the questionnaires and interviews will focus on addressing the research questions and relevant hypotheses within the concept of cloud computing in the banking system. Reliability of the data collection and analysis process will relate to adoption, implementation, and ethical challenges that might affect quality implementation of cloud computing in the banking sector. In order to supplement the collection and analysis of data through questionnaires, interviews, and regression analysis, the research process will incorporate extensive literature review in relation to previous researches on the concept of cloud computing. Extensive literature review will enhance the authority, credibility, reliability, and validity of the research through supplementing on the findings of the questionnaires and interviews research instruments.
Reflections
Obstacles and Challenges
In the execution of this research activity, several obstacles and challenges might hinder the achievement of accurate and valid results or findings. In order to achieve quality and effective findings in relation to the research questions and hypotheses, it is essential to identify, evaluate, and adopt the concept of minimization of the obstacles and challenges in the collection and analysis of data. One of the challenges in the execution this research is the hostility among the respondents. Hostility among respondents will hinder the collection of reliable data because of lack of cooperation. In order to manage this effectively and efficiently, it is essential to adopt and implement responsive and humble approach during the collection of data through the application of the questionnaires and execution of interviews (Philips et al p. 90).
Humble and professional approach will require extensive training to the research assistants thus ability to enhance cooperation by the respondents. Another challenge in the collection and analysis of data is the essence of error or biasness. Error reduces the reliability and credibility of the research exercise. In order to manage errors and biasness in the collection of data, it is essential for the research assistants to remain objective. This will enable the research exercise to collect data as they are in the field from the respondents having valuable information on the concept of cloud computing. Random sampling of the population will also reduce errors and biasness during the collection and analysis of data. Another obstacle in relation to the execution of this research project is understanding and adherence to the ethical considerations of the study. In order to manage this challenge, the project will develop clearance form and consent for participation in the interviews and filling-in of the questionnaires. The project will also adhere to the ethical considerations of objectivity, honesty, and universal procedures for the execution of the research.
Ethical Considerations
In the execution of the research exercise, several ethical considerations must come into play. One of the most ethical considerations in relation to the execution of the research is the maintenance of objectivity rather than subjectivity (Babbie p. 65). This entails collection of the data, as they appear within the field of study thus elimination of presumptions and biasness or essence of errors in the mining of information. In the aspect of literature review, the research exercise will acknowledge borrowed information in order to adhere to the patent and copyrights issues. The application of the clearance form and consent will also address the issues of ethical considerations while handling the human subjects during the study. Adherence to the universal procedures, instruments, and designs of the research will also be essential in the management of the ethical considerations in relation to the research project (Babbie p. 66).
Influence of Politics on the Research
Politics will have a minimal role or influence in the execution of the research project. This will contribute towards the achievement of objectivity in the collection and analysis of data. Minimal influence of the concept of politics will enable accurate understanding of the elements of adoption, implementation, and relevant challenges towards the institution of cloud computing in the banking industry. The aspect of objectivity will contribute in the realization of the accuracy, reliability, and validity of the findings and results in relation to the research questions and objectives. Accurate and reliable findings are adequate for the generalization of the results thus the development of theories and proposal of recommendations and concrete conclusion on the topic of study.
Works Cited
Roxaneh Charkhchi, et al. “A Classification of Qualitative Research Methods.” Research Journal of International Studies 20.(2011): 106-123.
Levin, Charles J. “The Advantages of a Client Questionnaire.” American Bar Association Journal 69.12 (2003): 1854.
Aksu, Hasan Hüseyin. “Questionnaries and Interviews in Educational Researches.” Journal of Graduate School of Social Sciences 13.1 (2009): 201-216.
Choubey, Rajnish, Rajshree Dubey, and Joy Bhattacharjee. “A Survey on Cloud Computing Security, Challenges and Threats.” International Journal on Computer Science & Engineering 3.3 (2011): 1227-1231.
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Babbie, Earl R. The Basics of Social Research. Australia: Wadsworth / Cengage Learning, 2011. Print.
Babbie, Earl R. The Practice of Social Research. Belmont, Calif: Wadsworth Cengage, 2010. Print.
Phillips, Patricia P, and Cathy A. Stawarski. Data Collection: Planning for and Collecting All Types of Data. San Francisco: Pfeiffer, 2008. Internet resource.
Ristov, Sasko, Marjan Gusev, and Magdalena Kostoska. “Cloud Computing Security In Business Information Systems.” International Journal Of Network Security & Its Applications 4.2 (2012): 75-93. International Security & Counter Terrorism Reference Center. Web. 18 Oct. 2012.
Roxaneh Charkhchi, et al. “A Classification of Qualitative Research Methods.” Research Journal of International Studies 20.(2011): 106-123.
Shimba, F.:Cloud Computing:Strategies for Cloud Computing Adoption. Masters Dissertation. Dublin, Dublin Institute of Technology, 2010. Shimba.
