Cloud computing has been in popular use for more than a decade, but it still suffers from a few myths that are easily debunked. For modern credit unions, making the shift to the cloud is a matter of when, not if, so it’s essential to understand the facts about cloud computing.
- It is too expensive
- It is less secure because you ‘lose control’ of the data
- Current IT staff will become obsolete
These concerns may sound serious, but the reality is that they aren’t valid. Take a look at why your credit union shouldn’t fear the cloud:
Misconception: The cloud is too expensive
When you initially study prices of cloud hosting services, it can be easy to balk at the pricing structure. However, cloud pricing only tells a small part of the story. Remember that you are balancing capital expenditures and operating expenses. You don’t need to invest in costly infrastructure when you move to the cloud.
When you take into account the total expense of running on-location networks compared to that of cloud services for credit unions, the actual numbers are very reasonable. As with other expenses, sticker shock only occurs if you don’t take the time to educate yourself on the true costs.
While the operating expenditures make your monthly payments go up, it is offset by several benefits such as more predictable costs, hassle-free budgeting, no significant cash outlays needed every few years, and no need to be concerned about maintenance and support because these are included in the operating costs of cloud services.
Misconception: The cloud isn’t secure
Many professionals, even those in the IT industry, remain skeptical about credit union cloud security. Their reasoning is that they can’t trust a system they can’t physically see or manage.
The truth is that when it comes to data security, physical storage location matters far less than the ability to manage and restrict access.
Having proper security suite and firewall configuration, as well as active security management, is much more important for protecting data integrity than physical server control.
One more benefit to cloud services for credit unions is the fast and efficient adoption of innovative technologies. Instead of regularly paying for new upgrades and security features, the cost of these technologies are already baked into the cost of the cloud platform.
Misconception: Current IT staff won’t have anything to do
After transferring infrastructure management to the cloud, your current IT staff is still responsible for server management even though it is located elsewhere.
Aside from this, IT also has other non-cloud related tasks to finish. Because of all the time and resources freed up by not having to actively oversee physical servers, your IT staff can work on your business more. One suggestion is to work on member-facing initiatives for your credit union, a project that they wouldn’t have time to support otherwise.
Many of the hesitations that credit unions have about the cloud can be easily addressed. Not only is the cloud more cost-effective than originally thought, but it’s also more secure than the majority of on-premise systems. The staffing implications of moving to the cloud is positive as well. Instead of spending time on maintenance and support, IT can now address member-facing services that provide significantly more value to the credit union.