The Theory Of Cloud Computing And Discussed Its Use In The Banking Industry

In recent years, the development of cloud computing in China can be described as turbulent. As an important part of the new generation of IT industry, cloud computing is not only regarded as the fourth revolution in the IT industry following the mainframe computers, personal computers and the Internet, but also one of the most promising technological revolution worldwide within the next3to5years, which may leads to a fundamental change of the business model of information industry.Cloud computing is a resource-sharing network model which can provide convenient services. It is not a new technology, but an innovative business model, which provides access to computing resources and services. It originated from distributed processing, parallel processing and grid computing. The cloud computing model has advantage of safe data storage, simple-terminal, service based on demand, infinite potential of storage and computing etc.With foreign banks entering China and quickly establishing a reputation in the innovation of business and services, China’s banks began to think of change, the Fundamental of which is business innovation. And the optimization of IT systems can provide support for it. In recent years, small and medium-sized banks have established responding to the call of the national policy. And they provide strong financial support for the development of local economy. However, small and medium-sized banks feel hopeless in the construction of IT system because they do not have enough money and excellent employees. Driven by the changes of the era, bank’s IT systems face many challenges due to the rapid growth of business forms and ever-expanding data throughput.While cloud computing, undoubtedly provides a new way to address these challenges. The launch of the cloud computing model will bring advantage to the banks of reducing risk, enhancing data analysis capabilities, shortening the run time and response time. In the face of new technology, banks have always taken a cautious approach due to their special nature. They raised questions as follows:Is cloud suitable for use in the banking industry? What will Cloud computing bring to the banking industry? Is’Cloud’secure? To solve these problems, except for the introduction and conclusions, the paper is divided into the following sections:The second chapter firstly described the basic concepts, characteristics and classification of cloud computing. Then review the course of development of cloud computing. At last, make in-depth analysis of the current development of cloud computing at home and abroad.The third chapter introduces the requirements of information construction of the banking industry and development status of it. Firstly makes in-depth analysis of the demand of banks for information construction; secondly introduces the difficulties faced by the banking industry in today’s fierce market competition; Finally summarizes the status of the development of information technology in the banking industry and raises the point that the use of cloud computing can enhance their competitiveness and promote a reliable way for its reform.The fourth chapter firstly introduces advantages that cloud computing can bring to the development of the banking industry; Secondly, through analyzing the core demands of cloud computing for small, medium and large commercial banks, raised the viewpoint that large banks can adopt private cloud model, small and medium-sized banks can adopt public cloud model. Again, summed up the common starting point for all types of commercial banks to explore cloud computing. Finally, described constraints of the application of cloud computing in bank industry.The fifth chapter made in-depth analysis of the case of Westpac Banking Corporation’s mail service outsourcing. Then it summed up referential experience for China’s bank industry.The six chapter came to the main conclusions of this paper:all kinds of commercial banks in China have different fundamental interests to the application of cloud computing services according to its-own resources and characteristics. Large banks can build a "private cloud" to ensure the security of data transmission, while the small and medium-sized banks can use the "public cloud" which can outsource some or all of the IT business. Finally, make some suggestion to the safe use of cloud computing in bank industry.