Survey suggests most finance firms are still wary of cloud computing

Most feel it is either unsuitable or too risky

Financial services firms ponder cloud computing

Most financial services firms are steering clear of cloud computing because of data security and transparency concerns, according to a survey from security and log management vendor LogLogic.

The 2010 Financial Services Industry Analysis survey polled 82 of the world’s largest banks, investment houses and insurance companies.

Some 34 per cent of respondents said cloud computing did not suit their company strategy, while another 26 per cent said they felt the technology was too risky.

In terms of transparency, firms said they would like to be able to see how the physical implementation of hardware and applications they were running was performing, through event management data such as log and event files.

LogLogic chief executive Guy Churchward said: "We’re not surprised to see that the firms [we questioned] are hesitant to adopt cloud computing. There are remaining questions about data security and transparency in the cloud, and cloud providers must offer improved visibility in these areas before we see mainstream adoption from financial services firms.”

However, 58 per cent of respondents said they did plan to invest in essential IT functions, such as security and compliance, with over 75 per cent concerned about increasing government regulation.