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View from Davos January 2 2013

Banks continue to reach for the clouds

Every e-mail that is sent, every tweet that is posted and every Facebook update that is published creates data that gets logged and backed up – somewhere. This ‘somewhere’ is 'the cloud'. With the continuous growth of digital social networks, this data cloud is expanding – creating both a buzz and opportunities for banks but also fears about data storage and maintenance.
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Banks continue to reach for the clouds

Few people probably ponder what happens when they click ‘send’ after writing an e-mail? The e-mail travels through the internet, via interconnected ‘highways’ of networks that enable the passage of data. It is picked up by an e-mail service provider such as Google or Yahoo! and the message is sent to one of their data centres. Google, for instance, has eight around the world. There, the e-mail data gets routed to the right address.

As the amount of data created continues to expand thanks to the rise of social networks, conventional telecommunications network bandwidths are at risk of being able to cope with these ever-growing volumes. A solution to this problem emerged a few years ago and has since been gaining in popularity. This solution? The cloud.

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