In the context of core data processing, “the cloud” means morethan just service bureau processing or a simple SaaS revamp.

Whereas service bureau processing and SaaS address how aparticular application is delivered to a credit union, cloudcomputing focuses on the maintenance of hardware resources. Acloud-based core processing platform is really just a cloudcomputing environment in which your credit union can use software.It's a subtle, but important, distinction.

Those opposed to service bureaus claim that a credit union givesup control of its data once it outsources data processing. That's avalid argument — service bureau systems tend to be cookie-cutter,with limited customization options. On the other hand, you candeploy or maintain virtually any software in a cloud environment.This means that the credit union user experience – includingcustomization — should be identical to an in-house system,because both environments run the same software.

How It Works

Cloud computing is made possible by advances in two criticaltechnologies. The first is server virtualization, or the ability toprovision multiple virtual servers on a single physical server. Acloud provider can provision a virtual server based on a creditunion's current needs, easily adding more resources as needsrequire.

The second technology is bandwidth. Several years ago, twoservers 500 miles apart could never deliver the same performance –the distance made it impossible to quickly move data back andforth. Today, that's no longer an issue.

Cloud Advantages

Cloud computing eliminates the need for a credit union to worryabout hardware maintenance. Virtually any on-premise server is acandidate for cloud-based tasks — including mail, file and imagingserver. Any application software running on the server can bemigrated to the cloud.

Because cloud providers tend to base their operations inworld-class data centers, credit unions also benefit fromstate-of-the-art data security.

Then, there's disaster recovery. Cloud servers are not exposedto the same conditions as your physical servers. Beyond that, awell-designed cloud operation is highly redundant. This means thatif something should go wrong with one of your servers, the data canbe available within a matter of minutes from a remote backupserver.

Perhaps most important of all, cloud computing frees your ITstaff from the mundane tasks of maintaining hardware, allowing themto focus on what they do best: serve your members.