AWS’ Latest Proposal to Woo Major Banks

Amazon Web Services has come up with a new strategy to lure banks to use its cloud computing service. AWS has discussed with financial institutions the idea of hosting their data on isolated “safe zones” across AWS’ data centers that would be walled off from other customers and the public internet, according to two people close to AWS.

The proposal is the latest in a series of moves AWS has made over the years to sign up global banks. But the firms have been slow to make the leap to cloud providers due to fears of regulatory repercussions if the data they store in servers used by multiple businesses is stolen by hackers.

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CORRECTION: Scott Mullins is head of business development for financial services at AWS and Frank Fallon is vice president of financial services for AWS. An earlier version of this story described their titles inaccurately. This story has also been updated to include attribution for our reporting on FinQloud.

Ron Finberg and Kevin Mclaughlin commented on this article.
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The CIA cloud is expensive to run and requires AWS to manage a separate set of servers and storage systems that aren’t part of its main cloud service. It’s also harder to do upgrading on the CIA cloud than on AWS’ regular data centers.