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00:00KRALINGEN. THANK YOU FOR JOINING US. WHAT EXACTLY DOES THE BANKING SECTOR NEED DIFFERENT FROM THE OTHER SECTORS? BRIDGET: THANK YOU FOR HAVING ME. IF YOU THING ABOUT IF YOU ARE A BANK, YOU HAVE THREE THINGS THAT ARE VERY DIFFERENT FROM OTHER SECTORS. FIRST IS REGULATION AND COMPLIANCE. BANKS ARE PART OF THE SYSTEMIC RISK OF ECONOMIES AND FOR CONSUMERS, SO THEY MUST COMPLY WITH VERY STRICT REGULATIONS. THAT IS A TWEEDY PERCENT BURDEN ON BAN -- THAT IS A 20% BURDEN ON BANKS EVERY YEAR, THEY HAVE HAVE HER NEEDS -- THEY HAVE HIGHER NEEDS. AND SECURITY, CUSTOMERS TRUST BSANKS. THE THIRD THING IS THE ABILITY TO CHECK AND CONFIRM THAT THEIR PARTNERS, WHETHER THEY ARE SOFTWARE PROVIDERS OR OTHER BANKS THAT ARE INTERACTING WITH THEM, ACTUALLY MEET REGULATORY CONTROLS. THEY NEED TO VALIDATE THAT REPEATEDLY FOR THE REGULAR LEADERS. THEY RELATING SAFETY AROUND COMPLIANCE, SAFETY AROUND A CYBER SECURITY AND AROUND THEIR ENTIRE ECOSYSTEM, WHICH IS VERY DIFFERENT FROM OTHER PUBLIC CLOUD OFFERINGS THAT EXIST IN THE MARKET TODAY. SCARLET: HOW DOES THE PUBLIC CLOUD YOU ARE DEVELOPING WITH BANK OF AMERICA WORK? TALK IS THROUGH THE MECHANICS. BRIDGET: WE HAVE WORKED WITH HIM FOR OVER A YEAR IN A DEEP COLLABORATION. THEY WILL BE OUR FIRST CUSTOMER ON THIS CLOUD. MOVING WORKLOADS THAT SERVE 66 MILLION CLIENTS. WHAT WE HAVE DONE IS WORK EXTENSIVELY AND DEEPLY AROUND THE TECHNICAL AND REGULATORY CONTROLS IN THE CLIMATE ON THINGS LIKE RESILIENCE AND SPEED OF THE CLOUD, THE SAFETY OF THE CLOUD, THE ABILITY TO TRACK AND AUTOMATE COMPLIANCE, AND TRACK AND AUTOMATE THE ONBOARDING OF OTHER SUPPLIERS TO THE BANK. IT MEANS INSTEAD OF HAVING TO CUSTOMIZE AND PUT A CONTROL LAYER ON TOP OF THE CLOUD, WHICH IS WHAT THEY WOULD HAVE TO DO TODAY OR ANY OTHER BANK WOULD HAVE TO DO ON TOP OF THE PUBLIC CLOUD, IT IS ENGINEERED INTO THE SOFTWARE OF THE CLOUD. SCARLET: IS IT CUSTOMER FACING? BRIDGET: YOU MEAN IN TERMS OF CUSTOMERS WILL BE TAPPING INTO THE CLOUD TO SAY DO MOBILE TRANSACTIONS OR LOOK AT THEIR DATA? YES, THAT IS THE INTENTION. BECAUSE IT HAS THE DEGREE OF SAFETY ENGINEERED IN. PRACTICALLY, WE HAVE THE HIGHEST DEGREE OF COMMERCIALLY AVAILABLE CRYPTOLOGY IN THE WORLD, IT IS ENGINEERED TO THE CLOUD AND IT IS SOMETHING CALLED ON YOUR OWN KEY, EACH BANK OWNS AND CONTROLS THE KEYS TO THE DATA IN THE CLOUD. WE DO NOT, NEITHER COULD A CLOUD VENDOR. CAROLINE: IBM HAS STAKED ITS AREAS OF FOCUS ON HYBRID CLOUD OFFERINGS. THE INNERWORKINGS BETWEEN THE PRIVATE AND PUBLIC CLOUD, AND REALIZING EVERY INSTITUTION WILL HAVE DIFFERENT CLOUD PROVIDERS, NOT JUST ONE. HOW ARE YOU FINDING THAT NEED DIFFERENTIATED WITHIN BANKS? HOW ARE YOU SEEING THEIR NEEDS WITH DATA INTERMINGLING WITH THE PUBLIC? BRIDGET: THAT IS A GREAT POINT. USUALLY BANKS HAVE BUILT IN MANY OF THE NEEDED SECURITY CONTROLS, BECAUSE THEY HAVE BEEN DOING THAT OVER THE YEARS AND IBM HAS BEEN SUPPORTING BANKS FOR MANY YEARS, SO WE KNOW ABOUT THE SAFETY AND SPEED AND NEEDED. WHAT WE HAVE DONE WITH THIS CLOUD OFFERING WITH BANK OF AMERICA IS PUT IN A CONTROL LAYER USING REDHAT OPEN SHIFT, THE LARGE ACQUISITION WE DID, WHICH ESSENTIALLY ALLOWS YOU TO PUT A CONTROL LAYER BETWEEN -- WHETHER YOU HAVE YOUR OWN PRIVATE CLOUD, ON PREMISE APPS, OR PUBLIC CLOUD YOU ARE USING, YOU CAN BUILD AN APPLICATION AND DEPLOY IT IN MANY PLACES. DEPLOY CONSTANT CONTROL AND DATA MANAGEMENT ACROSS ALL OF YOUR KIT. SO THAT AS YOU POINT OUT IS EXTREME THE ESSENTIAL FOR BANKS BECAUSE AT HAVE SYSTEMS THAT WORK FOR FISCAL USES YOU TO SOME OF THESE IT WILL NOT CHANGE. SCARLET: HOW DOES THIS PUBLIC CLOUD DIFFER FROM THE PUBLIC CLOUD THAT YOU ALREADY OFFER TO OTHER FINANCIAL CLIENTS? THIS IS NOT THE FIRST TIME YOU HAVE TEAMED UP WITH A BANK, SO WHAT IS THE MAIN DISTINCTION? BRIDGET: WE HAVE ALREADY WORKED AROUND THE CONTAINERS AND WE HAVE TALKED ABOUT, WE HAVE DONE A LOT OF WORK ON RESILIENCY AND SECURITY -- SO THE MAIN DIFFERENCE FOR US IS THE SPECIFIC REGULATORY REQUIREMENTS ENGINEERED AND BUILT INTO THE SOFTWARE. CAROLINE: AND YOU CAN KEEP UPDATING THEM. BRIDGET: EXACTLY. ONE OF THE COMPANIES THAT WE ACQUIRED A FEW YEARS AGO, THEY ARE A VERY LARGE REGULATION AND COMPLIANCE ADVISORY FIRM. THEY HAVE WORKED EXTENSIVELY WITH BANK OF AMERICA AS WE HAVE DONE THIS, OVER 450 REGULATIONS WHICH ARE NOT ENGINEERED AND THEY WILL MAINTAIN THAT. IT TAKES THE OWNER, EVERY SINGLE

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IBM Announces Financial Public Cloud

Bridget van Kralingen, IBM SVP of Global Industries, discusses public clouds for banks. She speaks with Bloomberg's Caroline Hyde and Scarlet Fu on "Bloomberg Markets: The Close". (Source: Bloomberg)

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