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TLDR:
- Cloud banking is gaining popularity with investors seeking SaaS solutions.
- Cloud computing has a long history dating back to the 1960s.
In the article “Cloud banking: 60 years on” by Dharmesh Mistry, the author explores the resurgence of cloud banking and its long history dating back to the 1960s. The current interest in cloud banking is driven by investors looking for predictable revenue streams through subscription pricing of Software-as-a-Service (SaaS) solutions. Mistry discusses the evolution of cloud computing, starting from the 1960s when mainframe computers were used to provide computing power as a utility. He highlights the role of third-party service bureaus as early cloud providers for smaller banks and credit unions, as well as the shift towards internet-based cloud services in the dot-com era.
Furthermore, Mistry explains the development of cloud-native solutions in the 2010s, fueled by faster processors, cheaper memory, and innovations like containers and micro-services. He emphasizes the advantages of being cloud-native for banks, such as scalability, faster development timeframes, and lower costs. However, he also notes the challenges banks face in transitioning to cloud-native solutions, including regulatory requirements and the complexity of legacy systems.
Overall, the article underscores the importance for banks to embrace cloud banking and innovate in order to stay competitive in the rapidly evolving financial services industry.
