DataBank acquires cloud service provider Edge Hosting
DataBank has acquired cloud hosting company Edge Hosting, which specialises in designing, operating and simplifying secure and compliant IaaS and PaaS Managed Cloud Hosting.
The deal will provide market expansion and additional expertise in the delivery of cloud solutions and managed services.
"Edge has built a great reputation for superior technical capabilities and proactive managed services throughout the industry," said Raul K. Martynek, CEO of DataBank.
"We plan to utilise the Edge team’s technical and process expertise to enhance our current managed service offerings, nationwide."
With "incredible synergies" between the two companies, Edge's CEO Vlad Friedman commented that he is "very excited" about the direction that was going to be taken.
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Friedman will transition to become the Chief Technology Officer of DataBank and will help lead product development for the new, combined company.
"DataBank is force-multiplier for us," said Friedman. "This deal will help open new doors for the Edge team and our customers."
"The diverse client-base of large enterprise accounts, as well as DataBank's large national footprint of top-tier data centre facilities, will help drive us forward."
Operating data centres across the US, DataBank has secured its position as a leading provider of cloud services, as well as providing enterprise-class data centre and interconnectional services.
Baltimore-based Edge Hosting, founded in 1998, pioneers outcomes-based strategy into managed hosting, growing over 20 years into a full service hosting and cloud service provider.
Edge Hosting also delivers comprehensive operational coverage of controls for FedRAMP, HIPAA/HITECH, PCI, SSAE 16/18 SOC 2 Type II and EU Privacy Shield Frameworks.
Bank of England fears ‘concentrated power’ of cloud leaders
The Bank of England says the financial sector’s reliance on a few key cloud providers could be damaging to financial stability.
Without naming any specific providers, BoE governor Andrew Bailey told a news conference he was concerned about a few cloud providers having “concentrated power” over banks’ data.
Bailey accepted that cloud companies were able to provide a level of reliability and security that banks would not be able to deliver on their own, but cautioned that financial organisations were bound by terms and conditions that were beyond their control. As private companies, they were also in control of pricing.
Bailey said: "That concentrated power on terms can manifest itself in the form of secrecy, opacity, not providing customers with the sort of information they need to monitor the risk in the service. We have seen some of that going on."
The BoE's Financial Policy Committee had previously said additional policy measures were needed to mitigate financial stability risks in cloud computing.
"In terms of the standards of resilience and the testing of those standards of resilience, frankly we will have to roll some of that back, that secrecy that goes with it. It's not consistent with our objectives.
"We have got to strike a balance here," Bailey said, referencing the need for privacy linked to cybersecurity concerns versus the need for transparency in the financial sector.
In response, a Google Cloud spokesperson told Reuters: "We're committed to working with financial services customers and regulators to provide them with controls and assurances on risk management, data locality, transparency, and compliance." AWS and Microsoft had also been asked for comment.