Cloud computing is the wave of the future for all things data related. Amazon started it with EC2 and S3. Microsoft is in it. Salesforce is doing it too. Credit unions are just starting to realize the benefits of virtualization and as more CU’s struggle with income generation, expense control, and capital expenditures, virtualization is going to take off. But why use your members’ capital to acquire VMWare or Citrix servers, additional bandwidth, etc when you can “outsource” the hardware and infrastructure to providers that are much more efficient at it than the CU could ever be and do it cheaper?
Credit unions love to have control of their infrastructure and data, many IT departments love new projects and new technologies. And they are pretty much required to. Just look at the NCUA’s guide for doing third-party due diligence. They don’t make it very easy to use new technology or unproven (read: new and innovative) vendors or products. Cloud computing is where we’re moving but how can credit unions make that jump while satisfying the NCUA’s security and vendor requirements?