Microsoft Azure Services Gain Traction Among Leading Financial Institutions
Microsoft’s cloud computing services have gained significant traction among top financial institutions worldwide. The company’s robust regulatory compliance and strong track record of financial stability are key factors driving this trend.
Regulatory Compliance Meets Customer Needs
According to industry reports, leading financial institution customers in major markets such as the UK, France, Germany, Australia, Singapore, Canada, and the United States have completed due diligence on Microsoft Azure services. These customers are satisfied that the company’s cloud services meet their respective regulatory requirements, giving them confidence in Microsoft’s ability to help them meet the high burden of financial services regulation.
Financial Strength and Stability
Microsoft’s financial strength is another significant factor contributing to its appeal among financial institutions. As one of the world’s largest companies by market capitalization, with a market cap exceeding $800 billion, Microsoft has a strong track record of stable profits and a reputation for stability.
Data Storage and Processing Concerns
Some financial institutions may be concerned about the offshoring of certain data storage and processing activities. Microsoft acknowledges that certain core categories of data will be stored at-rest outside of Nigeria, but emphasizes that customers have transparency into where their data is located and can tailor their configurations accordingly.
Transparency and Data Security
Microsoft provides detailed information on its data center locations, including interactive maps, to help customers understand where their data will be stored. The company also has a strong track record of meeting regulatory requirements in various jurisdictions.
Risk Assessment and Management
In terms of risk assessment, Microsoft identifies several key areas that its customers typically consider important, including:
- Political risks
- Country/socioeconomic risks
- Infrastructure/security/terrorism risks
- Environmental risks
The company emphasizes that its data centers are strategically located around the world and are secured to exacting standards designed to protect customer data from harm and unauthorized access.
Best Practices for Outsourcing
Financial institutions are advised to have internal mechanisms and controls in place to properly manage outsourcing activities. Microsoft provides guidance on approaches taken by its customers, but notes that this will need to be tailored for each financial institution to reflect its compliance practices.
Demonstrating Due Diligence
To demonstrate due diligence in the assessment of options for outsourcing a material business activity to a third party, Microsoft recommends:
- Preparing a Business Blueprint
- Conducting a tender/selection process for selecting the provider
- Undertaking a risk assessment and exercising due diligence in the selection and engagement of vendors or service providers
Conclusion
Microsoft Azure services are gaining traction among leading financial institutions due to its robust regulatory compliance, strong track record of financial stability, and ability to meet customer data security and protection needs. By understanding Microsoft’s approach to data storage and processing, risk assessment, and best practices for outsourcing, financial institutions can confidently adopt the company’s cloud computing services to support their business operations.