Cloud adoption has continued to increase across the financial sector. In fact, it's gone rapidly from early adopters to mainstream in the technology adoption life cycle, but some credit union executives are still lagging behind due to common concerns about hosted data storage and credit union cloud solutions. Let's look at the six most common myths about credit union cloud computing, and we'll tell you why they are worth further investigation and reconsidering the fear:
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My data is more secure inside my own walls.
Security is a full-time job if you're doing it well. Unless you are a network expert, with current knowledge of the constantly evolving threat horizon, with a lot of free time to focus on keeping on top of security best practices, then your data will be safer in the hands of an expert. Some credit unions have IT departments that focus on cyber security but they don't come without a cost. For small and mid-sized credit unions, it may be more cost-effective to outsource these services.
- The cloud will make my IT staff unnecessary.
If your daily responsibilities were reduced, would you become unnecessary? No, you'd find new ways to use your time to make your credit union run smarter and more productively. If your IT staff were freed up, they could spend more time focusing their efforts on other operational efficiencies that can improve the member experience.
- I already own my own equipment, the cloud will just cost more money.
The day you installed your new server hardware, it began its slow descent into obsolescence. It takes maintenance and upkeep and will eventually need to be replaced. However, a cloud provider worth its weight will keep hardware and infrastructure up to date. The newest software fixes and security patches will be made as soon as they are available. If you only recently invested in new hardware, then consider shifting your apps in stages. Hosted data is the direction of the future, integrating it as soon as possible can only benefit you.
- The learning curve will cost my credit union too much.
Initially, your staff will need minor training, but like most technological advances, the work gets simpler, not more difficult. Once your team is trained, they'll see how user-friendly and transparent, hosted access is. It will give them mobility and increase their productivity, which can outweigh the cost of training.
- The cloud is only good for backup and disaster recovery purposes.
While it is true that storing data and operation-critical apps in the cloud is a cost-effective and reliable method of backup, the likelihood of an outage at your credit union technology partner's data center is far less likely than on your own premises. Data centers that store the cloud servers and run your apps have highly redundant connectivity, reliable backup generators, no single point of failure and the expertise on staff to quickly address any problems in the case of a disaster. By leveraging the cloud you are taking preventative measurese to avoid down time and ensuring business continutity for your credit union and members.
Credit union cloud computing is not a new concept, yet there is still a sense of hesitation among some C-Suites. In a time where efficiency ratios are heavily scrutinized, CU executives would be wise to consider learning more about credit union cloud solutions available and set aside preconceived notions about the dangers of cloud computing.