The Importance of Local Data Storage for Banks

Topic Breakdown –
Project Topic – A small local Texas bank hired a external company to house their datacenter. The external company is under fire because of a security breach. This breach is causing the bank to want to house their data locally.

Problem Statement or Project Purpose – Texas Bank began as a modest family-owned bank and has now expanded to become a Fortune 500 organization seeking to compete with other larger banks in the market. There have been concerns with the virtualization of Texas Bank’s networks and systems. Although Texas Bank has network administrators, systems administrators, and engineers on staff, they are having trouble monitoring their operations due to their IAAS plan with a third-party provider. A few weeks ago, the vendor had a data breach in which three individuals posing as Hvac technicians gained access to the server warehouse and were able to attach USB sticks with malicious payloads. Though the data of Texas Bank was not compromised, the organization is now planning to build in its own data center that must utilize the greatest degree of protection to ensure that physical security is never compromised.

Project Scope
a. Project Goal(s) and Supporting Objectives –
a.1 Design and construct the allocated area for said intended data center.
a.2 Implement access control precautions to ensure that the server farm’s security is not compromised.
a.3 Have a process for daily operations.
a.4 Include a summary of the expenses connected with personnel wages that are necessary for the datacenter.

b. Project Outcomes and Deliverables –
b.1 A policy and plan for datacenter security
b.2 A server layout detailing the components by service
b.3 Strategy of operating and sustaining the datacenter after its implementation
b.4 Cost breakdowns for personel and operations of the datacenter

c. Projected Project End Date –
c.1 In four weeks, the project will be done
c.2 In the first week, the datacenter is inspected and a facility layout is created
c.3 Week two is utilized to establish safeguards and a security plan
c.4 Week three the hardware will be installed in the datacenter, provisioned, and connected to the bank’s Isp
c.5 Week 4 Verify that security precautions are set and business processes are operating smoothly.

IMPLEMENTATION and EVALUATION:
Describe how you will approach the execution of your project –
Assess the physical security risks observed in the majority of datacenters.

1. Creating a layout using the allocated space by Texas Bank and outlining protective measures.
2. Specifying where equipment will be installed and how it should be physically accessible.
3. Install physical security precautions.
4. Determine the amount of money needed to adequately staff the center.
5. Verify all security protocols and ensure that operations are functioning normally.

Sample Answer

The Importance of Local Data Storage for Banks
Introduction
In today’s digital age, data security has become a paramount concern for businesses, especially for banks that deal with sensitive financial information. Texas Bank, a small local bank, recently experienced a security breach when their external data center was compromised. This incident has raised concerns about the vulnerability of virtualized networks and systems and has prompted the bank to consider housing their data locally. This essay will explore the reasons why local data storage is crucial for banks and how Texas Bank can implement a secure and efficient data center.

The Risks of Outsourcing Data Storage
Outsourcing data storage to a third-party provider may seem cost-effective and convenient for banks like Texas Bank. However, it comes with inherent risks that can compromise the security and confidentiality of valuable customer information. The recent security breach faced by Texas Bank serves as a stark reminder of the dangers associated with relying on external companies for data storage. By housing their data locally, Texas Bank can exert greater control over their infrastructure and implement robust security measures tailored to their specific needs.

Enhanced Physical Security Measures
One of the primary advantages of local data storage is the ability to implement stringent physical security measures. By having their own data center, Texas Bank can control access to the server farm and ensure that only authorized personnel can enter the facility. This can be achieved through various means such as biometric authentication, video surveillance, and restricted entry points. By having complete control over physical security, Texas Bank can significantly reduce the risk of unauthorized access and potential breaches.

Increased Operational Control
When a bank outsources its data storage, it relinquishes a certain level of operational control to the external provider. This can lead to difficulties in monitoring and managing network operations effectively. By housing their data locally, Texas Bank can have direct oversight of their systems and networks, allowing for quicker response times in case of any issues or anomalies. This increased operational control enables the bank to proactively address security concerns and ensure the smooth functioning of their data center.

Cost Considerations
While building and maintaining a local data center may involve upfront costs, it can prove to be a cost-effective solution in the long run. By having their own data center, Texas Bank can avoid recurring fees associated with outsourcing data storage to external providers. Additionally, by customizing their infrastructure and security measures, the bank can optimize resource utilization and reduce unnecessary expenses. It is crucial for Texas Bank to conduct a comprehensive cost analysis that includes personnel wages to ensure that the financial implications of operating a local data center are well-managed.

Conclusion
The recent security breach faced by Texas Bank has highlighted the importance of local data storage for banks. By housing their data locally, Texas Bank can enhance physical security measures, increase operational control, and potentially reduce long-term costs. As Texas Bank aims to compete with larger banks in the market, it is imperative for them to prioritize data security and take proactive steps to safeguard customer information. Implementing a secure and efficient local data center will not only protect the bank’s reputation but also instill confidence in customers, ultimately contributing to the bank’s growth and success.

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The Importance of Local Data Storage for Banks

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