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Cloud Computing, SaaS, and Technology Outsourcing for Banks

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3 November 2009
Bart Narter

Abstract

Celent reviews five key technology outsourcing topics and provides clear definitions and business values with a banking industry context.

There is a lot of talk in the banking industry right now about cloud computing. This talk is coming more from vendors and journalists than it is from banks, and this means there is a lot of talk but not as much actual use. This has resulted in confusion, leaving many companies with more questions than answers.

In this report, Cloud Computing, SaaS, and Technology Outsourcing for Banks, Celent examines the following topics: cloud computing, software as a service (SaaS), application service providers and application hosting, colocation and managed hosting, grid and distributed computing, and business process outsourcing. The terms defined and explained in this report are sometimes used interchangeably in the marketplace when they should not be, and sometimes used to represent different things when they are essentially synonyms. This report attempts to sort through the hype so that banks can make informed and rational decisions about current trends.

"Despite the confusion, there is great value for banks to be found in different hardware and software outsourcing options, some of which will help to change the industry's approach to IT," says Jeff Goldberg, Celent senior analyst and author of the report.

This report puts each option in context of the banking industry, and provides straightforward explanations, values for the business, and examples of how different banks might utilize them.

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