Cloud draws critics
(10 October 2011 – Australia) The Australian Prudential Regulation Association (APRA) warned ANZ’s insurance technology team that any attempt to move to put customer relationship management in the cloud would be frowned upon.
ANZ had hoped to make a big impression in the Australian financial services sector with cloud computing, but the end-to-end testing, validation and virtualisation suite for software development across the bank’s technology division has drawn critics.
ANZ CIO Anne Weatherston spoke at the Committee for the Economic Development of Australia (Ceda) event in Sydney last week and said Cloud is great for small and [midsize] businesses.
"But I don't think it's completely relevant for large, complex banks at this point in time on a large scale. A lot because the industry is still evolving, but I think that it's [also] because, for the regulators, the jury is still out.'
In the longer term she does see cloud becoming an important tool, arguing that 'in five years time cloud will be a fact of life'.
Weatherston also used the Ceda event to outline her thoughts on how changing relationships between banks and their customers will require a fundamental overhaul of IT systems, according to local tech site Delimter.
'While at the heart of all bank systems the core transaction system is still a necessity, new systems will be required to enable 21st century service propositions, real-time data, including transactions, and high levels of service efficiency derived from end to end automation. The reality is that the cost of maintaining hard-coded, legacy applications with inflexible or non-existent process automation continues to rise, while the ability to deliver agility declines,' she told the audience.
However, despite Weatherston's comments, ANZ is not, like rivals NAB and CBA, planning to replace its core systems in the near future.
ANZ CIO Anne Weatherston spoke at the Committee for the Economic Development of Australia (Ceda) event in Sydney last week and said Cloud is great for small and [midsize] businesses.
"But I don't think it's completely relevant for large, complex banks at this point in time on a large scale. A lot because the industry is still evolving, but I think that it's [also] because, for the regulators, the jury is still out.'
In the longer term she does see cloud becoming an important tool, arguing that 'in five years time cloud will be a fact of life'.
Weatherston also used the Ceda event to outline her thoughts on how changing relationships between banks and their customers will require a fundamental overhaul of IT systems, according to local tech site Delimter.
'While at the heart of all bank systems the core transaction system is still a necessity, new systems will be required to enable 21st century service propositions, real-time data, including transactions, and high levels of service efficiency derived from end to end automation. The reality is that the cost of maintaining hard-coded, legacy applications with inflexible or non-existent process automation continues to rise, while the ability to deliver agility declines,' she told the audience.
However, despite Weatherston's comments, ANZ is not, like rivals NAB and CBA, planning to replace its core systems in the near future.
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