Under the largest agreement between search engine giant Google and Spanish?s BBVA Banks, Google has persuaded 110,000-strong bank to use its enterprise software.
This is the biggest deal which the Google Inc. has signed with one company to its cloud computing service, where the software will be offered via the Internet. This innovative drive will come into force by the end of 2012 as part of a financial institution strategy.
However, the bank told to the press that it would use this technology only for its internal communication. And this agreement is considered as one of the last industries to accept cloud computing.
BBVA?s Director of Innovation, Carmen Herranz, has however stressed by saying that all customer data will be secured in their own data centre and will be separate from cloud computing.
?The main goal is to promote innovation and making decisions and increase productivity. We are in a challenging market and need to make faster and more accurate decisions and eliminate duplication,? he said?in a press conference.
The bank will be using Google applications like email, calendar, docs, chat video and other collaborating tools. This would help the bank in achieving cultural change and get the whole company working together. In addition to this, the bank will also be creating a social networking for improving communication and to explore new ways to work.
?We are looking for a technology that would transform our business operations, not just make our workers more efficient. Integrating the Google apps for business suite with our own tools will allow us to introduce a new way of working where employees have access to all information they need just in one click, no matter where they are, and reap the benefits of using advanced collaboration tools,??Jose Olalla, Chief Information Officer, BBVA said.
DEAL ON THE CLOUDS
With this collaboration of BBVA and Google, it has become the largest deal ever in the field of technology. Traditional companies are doing their computation in their own premises to keep their data secure.
Sebastian Marotte,?the man in charge of Google Enterprise apps in Europe, said his corporate customers on an average have achieved cost savings of between 50% – 70%. But by sealing the deal with BBVA, he said: ?It is important not only because it is the largest ever agreement we have signed with an organisation but it is important because they are a very large financial company and it shows that now banks are also moving into cloud.?
BBVA?s data would not reside on dedicated server, as a solution called ‘private cloud’ would be distributed across the public cloud of Google Data Centre. However,?this would help in meeting the demands of banking regulator and data protection officers.
With cloud computing service on the rise, Sebastian added: ?Companies of all sizes, including those with tens of thousands of employees are now embracing cloud computing. It means a lot to us that BBVA, one of the largest financial institutions in the world, has decided to migrate to Google Apps. It shows that cloud computing has now become reality and leading organisations are already realising their potential to transform business.?
Many financial institutes have got to know the benefits of cloud computing apps from Google. The major benefit apart from cost saving is their IT staff and systems will act as operational technological coordinators.
Financial institutions have began taking small steps towards cloud computing by taking cost cutting initiatives without upgrading the core system infrastructure completely. With this computing technology, banks will be able to manage heavy workload in better way and achieve greater efficiency. This can prove as a big benefit for financial institutions.
Meanwhile, some financial experts have predicted that cloud services revenue will scale up to $148.8 billion in 2014 compared to $68.3 billion in 2010.
Source: BBC News, press.bbva, banking2020.com