Bringing the ATM to the cloud

Cloud-based technology is crucial for many industries, and ATMs and kiosks are no exception. It provides a simpler way to handle maintenance, hosting, feature rollout and other tasks.

Donna Embry, CEO of e-squared systems Inc., and Leland Englebardt, president of e-squared systems Inc., spoke more about how cloud-based remote hosting can benefit self-service operators at a session during the ATMIA conference held in February in Las Vegas.

Embry said cloud-hosting is very important for the next gen ATM project, but for many IADs, they often don't have a lot of control over the products and services they receive at ATMs. So the project started an IAD committee, which often asked, "How can we have less dependence on manufacturers for software development. How can I have same thing as iPhone apps for ATMs?" Embry said.

This became her passion for helping IADs to use cloud hosting to roll out ATM features.

However, Englebardt said "The ATM is an antiqued means of delivering self-service." Consumers expect the same experience as with an smart phone at any self-service device but ATMs can't keep up, mainly because it can't adjust to change or add features quickly.

"We have a costly, complicated, risky framework. Why should it be that way? POS has long since migrated from cash register to what amounts to an iPad and everything takes place in the cloud. Why not ATMs?" Englebardt said. "This is not risky tech, it's tried and true. Why not ATMs? Why are we still struggling with lead times? It can takes months and months, sometimes years to implement change to ATMs."

He said his overall goal is to be able to "establish access to maximum amount of product with a predictable rate of cost."

Cloud based technology can accomplish this task.

Remote cloud based hosting, "connects ATMs to a hosted virtual terminal manager that centralized application processes and integration. Decision making in the cloud reduces storage and information processing requirements for the terminal and enables no visit instant addition and updates of terminal functions," Englebardt said.

For example, with cloud-based technology, an ATM operator can remotely change a feature at an ATM in real time. For e-squared, Englebardt said they benchmarked the price based on the price of a technician visit, so it becomes a net positive if you eliminate one technician visit.

With this service, ATM operators could change features based on consumer tastes for the time. For example, during peak vacation time, an ATM operator could make a dynamic currency exchange feature live. This same principle could apply to a kiosk.

The goal is to "change rapidly without risk."

Englebardt also argued remote cloud-based hosting is also more secure than traditional ATM architecture. It utilizes cryptographic security, so that it is impossible for someone to access the ATM software without the cryptographic handshake from the host.

"It's a zero trust system," he said. This in turn reduces the ability of criminals to take over the ATM through methods such as jackpotting.

It can also consolidate and streamline testing and support requirements, Englebardt said.

Englebardt said remote cloud-based hosting will expand profitability for ATMs, especially in an age of decreasing transaction volumes and rising costs. For example, an ATM operator can more easily add tools such as bitcoin purchasing, dynamic currency conversion and other tools.

Ultimately, the goal should be to deliver the same sort of experience for customers that they expect from their smartphone, a customized experience and cloud-based technology can accomplish this.

"Think of it as Netflix for ATMs. You have a functionally infinite selection of content and it's all coming in one line," he said.

Lastly, he emphasized remote-cloud hosting will help the ATM survive what he calls, "the death of the single function device." It will help the public begin to see the ATM not just as a cash dispenser but rather, "a multifunction device."