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ProTrak Blog

October 14th, 2014
Jim Scaief

Client Data Security: Cloud-Computing Issues

Cloud technology concept: Cloud Network on digitalIn just a few years, cloud computing has become a commonly accepted technology infrastructure.  A cloud-based system offers two primary advantages in low overhead and license simplicity. 

Determining the best alternative for accessing cloud computing’s benefits requires a thoughtful analysis of a company’s need for control and security. While all cloud approaches deliver anywhere/anytime access for users, high-end investing firms such as hedge funds, private equity, and institutionally-focused traditional managers face vastly greater client-data security requirements.

The core issue is this:  While a hacker may not care about a few hundred clients of an investment firm (compared to millions of data targets elsewhere on the cloud vendor’s site), the investment firm must report the breach to its clients.  Just the possibility that data was accessed by someone with ill intentions cuts to the very core of the investment firm’s trustworthiness.

It’s one thing for a business to encounter a data security breach arising from stolen transaction data.  However, it’s a “bet-the-company” proposition if a high-end investment firm has its clients’ data hacked.  A high-end investment firm subscribing to public cloud software can be innocently caught up in a hacker’s broader ambitions in which the physical and data security layers have less exacting operational and regulatory requirements than the investment firm mandates. 

ProTrak emphasizes a Private Cloud for companies with dispersed and/or traveling employee users. (We also provide on-premises computing for firms in which all employee users can be directly connected to a server; these two options meet our clients’ usage needs while giving appropriate attention to client data security).

Private Cloud and On-Premises configurations allow a company to secure client-level data as well as physical devices and communication mechanisms  An investment firm gains the benefits of highly efficient, distributed processing without being commingled with hundreds (or thousands) of other subscribing businesses.  In this advanced, but tightly controlled environment, the firm operates below a hacker’s radar in the general obscurity of millions of small, private companies.  

We welcome the opportunity to discuss our private cloud configuration that incorporates ProTrak Web (our browser-based license) and our two mobile licenses (iPad and iPhone).

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