This year Bangladesh Bank published Guidelines of Cloud Computing and urged major financial companies to adopt it by 31 December. Not a long time ago organization had to rent a place or build a physical data center for which they needed a chunk amount of investment. Then comes the game-changing way for hosting applications data- CLOUD COMPUTING.
It is basically a mixture of 2 technologies. They are: a)Timesharing b)Distributed Computing. Timesharing provides access to a pool of computing resources distributed across a large system. Distributed Computing spreads computational tasks among numerous networked devices, both locally and remotely, eliminating a central processing point.
Bangladesh is moving towards a cashless society. The Bangladesh Bank published guidelines for secure cloud computing in March 2023.These guidelines apply to various financial institutions. The deadline for implementing these guidelines is December 31st, 2023. The purpose is to ensure a secure digital infrastructure for financial services.
By effectively managing its Cloud Service Provider (CSP) and adhering to industry best practices, an organization gains the flexibility to choose any of the five cloud deployment models: private, public, community, multi-cloud, or hybrid. This wide range of options allows the organization to tailor its cloud strategy to its specific needs and goals.
In Bangladesh, all financial institutions, including new digital banks, storing data and applications are recommended to use private cloud computing. This model offers dedicated hardware for each organization, unlike public cloud computing where resources are shared over the internet and accessible to anyone.
Instead of relying solely on one cloud provider, some organizations choose a multi-cloud approach. This involves combining services from different providers like Amazon Web Services, Azure, Google Cloud Platform, or others. This strategy leverages the unique strengths of each provider, such as specific services they specialize in, or simply avoids dependence on a single vendor.
The Bangladesh Bank’s “Guidelines on Cloud Computing” emphasize that cloud computing allows banks and other financial institutions to be more responsive to customer needs for new products and services. Importantly, these guidelines remain neutral, not endorsing any specific cloud service provider or deployment model. This gives banks the flexibility to choose the best option based on their unique requirements.
The Bangladesh Bank’s guidelines outline the essential role of cloud computing in a thriving data-driven digital economy. However, before adopting cloud solutions, organizations must carefully categorize their data and conduct regular risk assessments. While cloud security often surpasses on-premise security, implementing it requires thorough planning and awareness of business and technical security needs.
To address the evolving threats in complex cloud systems, these guidelines categorize security into two domains: business and technical. Both domains require detailed security solutions, avoiding any gaps that could lead to audit failures, non-compliance, or even cyberattacks.
The guidelines emphasize the importance of a comprehensive cost analysis and budget planning when selecting cloud solutions. Organizations should ensure the chosen solution effectively mitigates potential risks while considering future needs.
Furthermore, successful cloud adoption requires significant investment in training and hiring skilled professionals. At least three key roles are recommended: Cloud Architect, Cloud Developer, and Cloud Security Engineer, each contributing their expertise to design, build, secure, and manage cloud infrastructure and applications.
The Guidelines emphasize the importance of carefully managing Cloud Service Provider (CSP) agreements. This includes ensuring clauses for compensation in case of data loss or misuse by the CSP, or if they fail to uphold regulatory or contractual requirements.
