Temenos, Microsoft Bring Azure Clouds To Mexico - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
Cloud // Software as a Service

Temenos, Microsoft Bring Azure Clouds To Mexico

Six microfinance institutions are using the cloud system, and Microsoft and banking software provider Temenos are expanding to Africa, Southeast Asia, and other emerging markets.

Slideshow: Cloud Security Pros And Cons
Slideshow: Cloud Security Pros And Cons
(click image for larger view and for full slideshow)
As part of a new strategy to put cloud-based core systems in place for microfinance institutions in emerging markets, Microsoft has partnered with banking software provider Temenos to migrate its T24 core banking system onto the Windows Azure development platform. The companies aim to lower costs for financial institutions with this system by using a consumption-based pricing model and eliminating the need to maintain and operate hardware and software associated with on-premise core systems.

The first implementations of T24 on Windows Azure went live in May 2011 in six microfinance institutions located throughout different regions of Mexico, including Sofol Tepeyac, Grupo Agrifin, Findeca, Su Servicio Financiero, and Capital Global. (As of this writing, the sixth institution does not yet wish to be public.)

"These are some of the smallest institutions that the company serves, with customer counts in the hundreds," said Murray Gardiner, director of microfinance and community banking at Temenos. "These are institutions that wouldn't otherwise have access to core banking systems." He added that most of them were previously using spreadsheets to store and track data. The companies worked together to optimize T24 for the Windows Azure platform. Running T24 natively on Windows Azure does not change the system's response time or functionality, according to Gardiner. And because the solution is on a low-cost, consumption-based pricing model, financial institutions should be able to easily scale their resources and increase volume on demand.

When it comes to matters of security, Gardiner says that "risks are mitigated and significantly reduced" on the Azure platform. Safeguards include multiple levels of physical and data security, with restricted access to the data centers and servers themselves and high levels of network protection, according to Colin Kerr, industry solutions manager for Microsoft's Worldwide Financial Services. In addition, Kerr said, Microsoft and Temenos are partnering with financial institutions to ensure compliance with local laws, regulations, and industry requirements.

Although it's still too early to cite any specifics in terms of cost savings or growth, Kerr acknowledged that the mere use of this cloud-based core system is a big step for the Mexican microfinance institutions, and for the financial industry on a whole. "Many in the industry thought this was still going to be a long way off," he said. "I think it surprised many people how quickly these institutions are willing to put their core systems in the cloud."

Read the rest of this article on Bank Systems & Technology.

Security concerns give many companies pause as they consider migrating portions of their IT operations to cloud-based services. But you can stay safe in the cloud. In this Dark Reading Tech Center report, we explain the risks and guide you in setting appropriate cloud security policies, processes and controls. Read our report now. (Free registration required.)

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
Commentary
2021 Outlook: Tackling Cloud Transformation Choices
Joao-Pierre S. Ruth, Senior Writer,  1/4/2021
News
Enterprise IT Leaders Face Two Paths to AI
Jessica Davis, Senior Editor, Enterprise Apps,  12/23/2020
Slideshows
10 IT Trends to Watch for in 2021
Cynthia Harvey, Freelance Journalist, InformationWeek,  12/22/2020
White Papers
Register for InformationWeek Newsletters
Video
Current Issue
2021 Top Enterprise IT Trends
We've identified the key trends that are poised to impact the IT landscape in 2021. Find out why they're important and how they will affect you.
Slideshows
Flash Poll