UK policymakers are set to recommend the cloud computing sector for greater regulation as concerns grow that an unlegislated market may cause more harm than good long-term.
With major banks and companies using the technology to improve their processing speeds and data management, among other benefits, it also opens the possibility of more software bugs and downtime if integration is not well managed.
It could be a blow to the burgeoning cloud sector if guidelines and rules are not deemed to allow the safe and effective use of cloud, along with a series of procedures to protect implementation, if the result is damage to reputation.
There have been some high-profile banking issues about technological improvements, and as society becomes more cashless, importance grows for regulators that they maintain enough control over fixing problems.
The case study examined that the ill-fated new IT introduction from TSB in spring 2018 led this push, where thousands of banking customers were locked out of their accounts when a botched upgrade resulted in the bank’s reputation nosediving.
A review of legal standings was called for after widespread outrage, with these lawmakers indicating they thought that blame could not be withheld from third-party companies if something went wrong when introducing new technology and migrating servers.
Therefore, cloud service providers may be regulated in some way, which could ensure stable growth in the sector as well as security and accountability.